The Green Paradox in Open Economies

摘要: This paper explains how, in the context of incomplete coordination among all countries, unilateral policies that might at first sight seem pro-green could actually turn out to harm global environment. The free-riding motives and difficulty reaching an effective international environmental agreement are reviewed. As a step, various channels lead carbon leakage static models open economies identified, some simulation results reported. is complemented by review possibility green paradox outcomes dynamic open-economy with exhaustible resource exploited far-sighted firms. It shown border tax adjustments can outcome. Directions for future research suggested.