Strategic issues in global climate change policy
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An analysis of prospects for deriving self-enforcing, global, greenhouse gas emission
mitigation agreements is provided. Policy spillovers and carbon leakages are
accounted for. Situations where mitigation effort should be concentrated in particular
countries and where efficient outcomes can be fostered by international trade in emissions
permits are discussed. The use of auxiliary policies to transform intractable Prisoner’s
Dilemma incentive problems to more tractable problems, the role of policy
commitments and the strategic implications of ‘no regret’ and ‘adaptation’ policies are
analysed. Dynamic and repeated game formulations are outlined.