How to Negotiate Ambitious Global Emissions Abatement A Statement of Key Principles and an Explanatory Note

1 Peter Cramton is Professor of Economics at the University of Maryland and an expert on market design; Axel Ockenfels is Professor of Economics at the University of Cologne and Director of the Cologne Laboratory of Economic Research. Ockenfels thanks the German Science Foundation for support through the Leibniz program and the research unit “Design & Behavior” (FOR 1371). Steven Stoft consults on electricity market design and is the author of Carbonomics and Power System Economics. Their research on climate policy can be found at www.pricecarbon.info and www.cramton.umd.edu/papers/climate. Statement on a Global Carbon-Price Commitment*