Hoel, Michael - C.E.P.R. Discussion Papers - 1994
If some, but not all, countries are cooperating to reduce CO2 emissions, it can be argued that: A high carbon tax on … therefore CO2 emissions, in those countries. This will to a large extent be counteracted by increased production of such goods … in the countries which have no such policy, however. Since it is total CO2 emissions from all countries which is relevant …