Welfare effects of unilateral climate policy

Focusing on the intersection of climate change and international trade, the book employs an overlapping generations model to analyze the effects of unilateral climate policies on global warming. It constructs a two-country economic framework to explore how government debt and welfare considerations influence climate action. The study highlights the significance of dynamic efficiency and net foreign asset positions in shaping effective climate strategies, providing a nuanced understanding of the economic implications of reducing emissions.