In a multi-country model with interconnected markets for fossil fuel and deposits some countries fight climate damage by purchasing and preserving fossil fuel deposits, which would be exploited otherwise. We analyze the effectiveness of such a deposit policy, when that policy stands alone or is...

If a coalition of countries implements climate policies, nonparticipants tend to consume more, pollute more, and invest too little in renewable energy sources. In response, the coalition's equilibrium policy distorts trade and it is not time consistent. By adding a market for the right to...

This paper presents a novel benefit of linking emission permit markets. We let countries issue permits non-cooperatively, and with endogenous technology we show there are gains from permit trade even if countries are identical. Linking the permit markets of different countries will turn permit...

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...

In a two-period model with two groups of countries that extract, trade and consume fossil fuel, a climate coalition fights against climate damage by purchasing or leasing deposits to prevent their extraction, and seeks to manipulate the fuel prices in its favor. The deposit-purchase policy is...

In a two-period model with two groups of countries that extract, trade and consume fossil fuel, a climate coalition fights against climate damage by purchasing or leasing deposits to prevent their extraction, and seeks to manipulate the fuel prices in its favor. The deposit-purchase policy is...

I develop a dynamic model of private provision of public bads allowing investments in technologies. The analysis is tractable and the MPE unique. The framework is used to derive optimal incomplete contracts in a dynamic setting. While the noncooperative equilibrium is very inefficient,...

Climate change may cause most harm to countries that contribute least to greenhouse gas emissions. This paper identifies deontology, solidarity and consequentialism as the principles that can serve as a basis for a fair international burden sharing scheme of adaptation costs. We translate these...

The texts of the COP 21 Decision and its Annex are scrutinized from the particular point of view of the extent to which economic theoretic concepts can be considered to inspire them. While this is shown to be partially the case in some of the intentions, the texts themselves contain more...

This paper compares the Kyoto Protocol and the Paris Agreement in the dynamic game of Battaglini and Harstad (2016). The asymmetric Nash solution of this game reflects the Paris Agreement, whereas the symmetric Nash solution reflects the Kyoto Protocol. In a large set of economies, the Kyoto...