We incorporate three important aspects of current climate policy, unilateralism, demand side approach and a climate target, in a multi-country model with flow dependent fossil fuel extraction costs and a backstop. It turns out that the optimal climate coalition should encompass all countries...

Using an endogenous growth model with a climate target, this paper determines the optimal climate policy and the optimal economic development. Climate policy ensures the climate target by imposing a carbon tax and subsides research to internalize adaption technology spillovers. The investment...

Using an growth model with climate damages and a tipping point, this paper determines the optimal climate policy and the optimal economic development. Climate policy internalizes climate damages and technology spillovers by a carbon tax and a research subsidy. The investment regime is determined...