Person: Cramton, Peter

Marketplace, 02.10.2015 | Scott Tong

„The last of the world’s big economies, India, has submitted its voluntary pledge to regulate carbon emissions. Already, though, some critics say India could do more. And collectively, the world’s total commitments, as the United Nations climate conference in Paris approaches, are projected to be insufficient to meet international targets. Many economists say the central issue is what’s known as the ‘free rider’ problem […] ‘Some countries will observe others are not doing their share,’ […] economist Peter Cramton said. ‘And as a result they’ll say, ‘I’m not going to do my share either.’ […] In an upcoming paper, Cramton suggests any patchwork of voluntary commitments, including current climate talks, will fail. The incentive to ride for free, the paper says, is too strong’.”