We study the endogenous formation of climate coalitions linked to a preferential free trade arrangement. In a multi-stage strategic trade and participation game, coalition and fringe countries dispose of a discriminatory tariff on dirty imports as well as emission permits imposed on domestic...

Should the trade regime provide differential treatment to developing states? Or are uniform, nondiscriminatory rules more appropriate? Twenty years ago, in Developing Countries in the GATT System, Robert Hudec used political economy arguments to claim that preferential trade policies harmed...