Under which conditions unilateral tightening of climate policy causes a weak or strong green paradox or even decreases social welfare has recently been studied by Hoel (2011). Hoel assumes that the costs of extracting fossil fuel are linear in output. We extend his model by allowing for...

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...

Consider a dynamic model with two countries or coalitions that consume and trade fossil fuel. A non-abating country owns the entire fuel stock and is not concerned about climate change, represented by a ceiling on the carbon dioxide concentration. The government of the other country implements...

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...