This paper examines the efficiency of decentralized leadership where regional governments contribute to the provision of multiple regional and national public goods. Unlimited decentralized leadership is inefficient because regional governments have incentives to overspend resources in the...

We examine numerous settings in which large strategic nations make environmental policies in the presence of international trade and form coalitions that aim to mitigate global or continental transnational pollution. We show that every nation has incentives to internalize all emission...