Moreover, advanced economies are responsible for the majority of historical greenhouse gas emissions. If one global price is established for emissions, we would probably need some type of a global system of compensation for poorer countries. The key is not to try to resolve the issue of effectiveness and equity of climate policy with a single tool, i.e.
country-specific emission targets or country-specific pricing mechanisms. This would easily lead to unwanted effects, such as carbon leakage. Another key question is how to create incentives for governments to participate in the combat against climate change. The problem is due to the fact that the benefits of climate policy are global, while the costs of reducing greenhouse emissions are usually country-specific or local.