“…If 12 Baumol and Bradford (1970) show that optimal taxation of externalities differs from the internalization of those externalities under a budget constraint. Even if abatement costs were perfectly comparable across countries, it is not obvious that the kind of total abatement cost minimization that a uniform tax would bring corresponds to a welfare optimum (Chichilnisky and Heal 1994;Chichilnisky 1994;Hourcade, Helioui and Gilotte 1997). If any country were to set its carbon tax in autarky, it would compare the marginal cost of mitigation, in terms of foregone consumption utility for its population, with the marginal benefits of smaller (future) climate change.…”