Two effects are at issue in evaluating country incentives to participate in global carbon emission initiatives: a utility loss from reduced consumption due to reduced use of fossil fuels and a gain from lowered temperature change. The latter accrues to all countries. Own country emissions...

Carbon taxes have largely been discussed as individual country measures (even if taken simultaneously) aimed to reduce carbon emissions, slow global warning, and internalizing the externalities associated with carbon generating activities, such as power generation. There has however been little...