The Greenhouse Effect, Property Rights and Developing Countries

To deal with the problem of the greenhouse effect it is suggested to create and assign the global property right to emit C02 (with its holder restricted to set a uniform price for both emission and absorption of C02 and to equate revenues and expenses) in order to reach the plausible aim of a zero C02 net emission. Though both practicable as a "third-best" policy relying mainly on market forces and ethically acceptable (due to the possibility of transfers to the developing countries) there are serious political obstacles to be overcome