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We study how international environmental agreements can take advantage of domestic time-inconsistency problems. Policymakers often prefer future policies to be sustainable, but are tempted to invest less when being in office. We find the equilibrium number of signatory countries to be higher...
Persistent link: https://www.econbiz.de/10015333264
I examine a policy-making game among countries that must choose both a policy instrument (e.g., a tax or a quota) and its intensity (i.e., the tax rate or the quota level) to price pollution. When countries price pollution non-cooperatively, they not only set the intensity inefficiently, they...
Persistent link: https://www.econbiz.de/10012213052
This paper analyses the cost implications for climate policy in developed countries if developing countries are unwilling to adopt measures to reduce their own GHG emissions. First, we assume that a 450 CO2 (550 CO2e) ppmv stabilisation target is to be achieved and that Non Annex1 (NA1)...
Persistent link: https://www.econbiz.de/10003779483
We propose a theory of climate-policy motivated foreign intervention to study different forms of international climate governance in the presence of power imbalance. Foreign countries have at least three options to intervene in another country's domestic climate policy: i.) Agreements with...
Persistent link: https://www.econbiz.de/10013473902
In an interconnected world, economic and political interests inevitably reach beyond national borders. Since policy …
Persistent link: https://www.econbiz.de/10011987983
How do shifts in the global balance of power shape the world economy? We propose a theory of alignment-based “hegemonic … promote policy alignment and thereby facilitate deeper trade integration. A unipolar world, dominated by a single hegemon …, tends to support globalization. However, the transition to a multipolar world can trigger fragmentation, which is …
Persistent link: https://www.econbiz.de/10015420366
This paper examines policy centralization outcomes in a two-jurisdiction, political economy model of public good provision choices with heterogeneous policy preferences and interjurisdictional policy spillovers, under alternative democratic choice procedures, namely, direct democracy and...
Persistent link: https://www.econbiz.de/10011400894
We describe a model of international, multidimensional policy coordination where countries can enter into selective and separate agreements with different partners along different policy dimensions. The model is used to examine the implications of negotiation tie-in - the requirement that...
Persistent link: https://www.econbiz.de/10011400892
The world has pledged to protect 30 percent of its land and waters by 2030 to halt the rapid deterioration of critical … summarize empirical evidence across multiple regions of the world. In most cases, protection has had at most a modest impact on …
Persistent link: https://www.econbiz.de/10014431238
We develop a two sector incomplete markets integrated assessment model to analyse the effectiveness of green quantitative easing (QE) in complementing fiscal policies for climate change mitigation. We model green QE through an outstanding stock of private assets held by a monetary authority and...
Persistent link: https://www.econbiz.de/10013285512