We examine an open economy's strategy to reduce its carbon emissions by replacing its consumption of coal - very carbon … counterproductive, ultimately increasing world emissions. We establish testable conditions as to whether a unilateral tax on domestic CO … characterize this strategy's implications for climate policy in the rest of the world. Finally, we present an illustrative …

We examine an open economy's strategy to reduce its carbon emissions by replacing its consumption of coal - very carbon … than one carbon energy source may turn counter-productive, ultimately increasing world emissions. Thus, we establish … of the world's emission commitments more difficult to meet. Finally, we apply our results to the case of the US. …

crowding out of the more CO2-intensive coal for electricity generation. Secondly, environmental regulations have been tightened …

crowding out of the more CO2-intensive coal for electricity generation. Secondly, environmental regulations have been tightened …