Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/108826
Authors: 
Kollenbach, Gilbert
Year of Publication: 
2014
Series/Report no.: 
Volkswirtschaftliche Diskussionsbeiträge, Universität Siegen, Fachbereich Wirtschaftswissenschaften Wirtschaftsinformatik und Wirtschaftsrecht 172-14
Abstract: 
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 which are concerned about global warming and that the carbon tax increases initially to approach zero later on. While a fast increasing tax may cause an increase of early fossil fuel extraction (weak green paradox), a sufficiently large climate coalition can guarantee the adherence to the climate target. We present both a sufficient coalition size rule and the stable coalition size evolution path. It is shown that the results are robust to a stock dependence of extraction costs.
Subjects: 
climate change
climate target
unilateral climate policy
JEL: 
Q41
Q42
Q54
Q58
Document Type: 
Working Paper

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