Climate Clubs, Border Carbon Adjustments and Trade Wars - Dynamic Games and Applications Seminar

Explore the complexities of international climate policy and trade dynamics in this 54-minute webinar from the Dynamic Games and Applications Seminar series. Delve into Santiago Rubio's analysis of climate clubs, border carbon adjustments (BCAs), and potential trade wars. Examine the evolution of Nordhaus' Nobel Prize-winning proposal for climate clubs, focusing on the use of BCAs instead of tariffs to penalize non-participants. Investigate the role of international organizations in proposing cooperation based on harmonized carbon taxes and BCAs. Learn about the extension of the standard coalition formation game used in International Environmental Agreements (IEAs) literature, incorporating new actors and scenarios. Understand the intra-industry trade model used to evaluate the effects of BCAs and retaliation on trade. Discover key findings on the stability of grand coalitions, welfare implications, and the impact of retaliation on climate club effectiveness.