Abstract:
We study a model of heterogeneous states regulating aviation non-CO2 effects with two margins (rerouting and SAF) under non-cooperation and climate clubs (partial or full cooperation). Rerouting can trigger strategic offsetting as nonmembers shift flights back to the short route, weakening mitigation and, in the extreme, raising global harm. Full cooperation eliminates offsetting but may be unstable because burdens and gains are unevenly distributed, giving other members incentives to defect.
