A central question in climate policy is whether early investments in low-carbon technologies are a useful first step towards a more effective climate agreement in the future. We introduce a climate cooperation model with endogenous R&D investments where countries protect their international...

The issue of carbon border tax adjustment (CBTA) has been coming up for the last few years as a viable policy alternative from both sides of the Atlantic Ocean. The economic rationale is that when a domestic producer is subject to a domestic carbon emission taxation and faces competition with an...