Introducing a price on greenhouse gas emissions would not only contribute to reducing the risk of dangerous anthropogenic climate change, but would also generate substantial public revenues. Some of these revenues could be used to cover investment needs for infrastructure providing access to...

Fiscal considerations may shift governmental priorities away from environmental concerns: Finance ministers face strong demand for public expenditures such as infrastructure investments but they are constrained by international tax competition. We develop a multi-region model of tax competition...

A major concern in climate negotiations is that decarbonization may significantly hurt the development process. This paper shows that international specialization can contribute to making environmental and economic objectives compatible. When carbon efficiency differs between two trading...