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A Global Compass for the Great Divergence: Emissions vs. Production Centers of Gravity 1820‐2008

2019-10-15, Sauter, Caspar, Grether, Jean-marie, Mathys, Nicole

We construct the world's centers of gravity for human population, GDP and CO2 emissions by taking the best out of five recognized data sources covering the last two centuries. On the basis of a novel distorsion‐free representation of these centers of gravity, we find a radical Western shift of GDP and CO2 emissions centers in the 19th century, in sharp contrast with the stability of the demographic center of gravity. Both GDP and emissions trends are reversed in the first half of the 20th century, after World War I for CO2 emissions, after World War II for GDP. Since then, both centers are moving eastward at an accelerating speed. These patterns are perfectly consistent with the lead of Western countries starting the industrial revolution, the gradual replacement of coal by oil and gas as alternative sources of energy, and the progressive catch up of Asian countries in the recent past.

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Geographical spread of global emissions: Within-country inequalities are large and increasing

2016-2, Sauter, Caspar, Grether, Jean-marie, Mathys, Nicole

In spite of the extensive literature on greenhouse gas emission inequalities at the world-wide level, most of the evidence so far has been based on country-level data. However, the within-country dimension matters for both the implementation and the policy formation of climate policies. As a preliminary step towards a better understanding of within-country inequalities, this paper measures their extent for the two major greenhouse gases, CO2 and CH4, over the 1970–2008 period. Using Theil-index decompositions, we show that within-country inequalities account for the bulk of global inequality, and tend to increase over the sample period, in contrast with diminishing between-country inequalities. Including differences across sectors reveals that between-sector inequalities matter more than between-country inequalities, and between-sector inequalities become the dominant source of global inequality at the end of the sample period in the CO2 case. Finally, estimated social tensions arising from the disconnection between emissions and future damages turn out to be increasing as soon as within-country disparities are taken into account. These orders of magnitude should be kept in mind while discussing the efficiency and fairness of alternative paths in combating global warming.