Carbon emissions linked to capital and technology transfer

Reducing carbon dioxide emissions, and hence global warming, could be achieved by placing a carbon budget on buildings and light vehicles. In this scheme, a building or vehicle is allocated an annual carbon budget expressed as kg/carbon. The user of the building or vehicle is then taxed for every carbon unit used over its budget limit. The aim of this paper is to extend this carbon budget idea in order to set up a formula for achieving capital and technology transfer from industrialized countries to developing countries. In addition, the author proposes a mechanism for linking historic carbon emissions caused in the industrialized world with compensation strategies for the developing nations. (UK)