This article examines how to account for the welfare effects of carbon dioxide emissions, using the historical experiences of Britain and the USA from the onset of the industrial revolution to the present. While a single country might isolate itself from the detrimental effects of global warming in the short run, in the long all countries are unable to free ride. Thus, we support the use of a single global price for carbon dioxide emissions.

This paper proposed l on how to proceed with the Climate Negotiations after the meager results of the United Nations Climate Change Conference in December 2009 in Copenhagen.

It argues splitting continued negotiations into two separate blocks could both save time, and make the world more likely to ultimately reach a comprehensive treaty in Mexico City in December 2010.