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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...
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The multilateral regime to address the problem of global climate change is manifest in the Kyoto Protocol, negotiated in that city in 1997, and likely soon to enter into force. The multilateral regime to address international trade is manifest in the World Trade Organization, established in...
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