Global Warming and the G22 Nations: On the Failure of the Unfccc and Chaos Theory

Abstract

Economic outcomes tend to be best when there is no market failure, the standard textbook teaches us. Yet, the global economy in a broad sense, covering all consumers, firms and households is today plagued by externalities and free riding, as benefits from and costs for greenhouses gases are not tied together (Stern, 2007, 2015). Neither the UNFCCC nor the IPCC delivers real policy implementation against climate change (Conka, 2015; Vogler, 2016). This common pool regime (CPR) has too many members, resulting in transaction costs skyrocketing. It confounds sustainable development in general with specific anti-global warming policy-making and implementation of real results. The focus should be on the G20 countries plus Iran, as they are responsible for more than 2/3ds of all CO2s.