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A Unifying Theory of Foreign Intervention in Domestic Climate Policy

Author

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  • Juan Moreno-Cruz
  • Anthony Harding
Abstract
We propose a theory of climate-policy motivated foreign intervention to study different forms of international climate governance in the presence of power imbalance. Foreign countries have at least three options to intervene in another country’s domestic climate policy: i.) Agreements with Extraction; ii.) Agreements with Transfers; and iii.) Agreements with Sanctions. We distill the fundamental properties of different climate policy options into a simple parameterization and examine the incentivizes and preferences for each type of foreign intervention. We find that the preference for the type of foreign intervention depends critically on the policy externality of different domestic climate policies.

Suggested Citation

  • Juan Moreno-Cruz & Anthony Harding, 2022. "A Unifying Theory of Foreign Intervention in Domestic Climate Policy," CESifo Working Paper Series 10172, CESifo.
    • Handle: RePEc:ces:ceswps:_10172
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    References listed on IDEAS

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    Cited by:

    1. Toke S. Aidt & Facundo Albornoz & Esther Hauk, 2024. "To Cut or not to Cut: Deforestation Policy under the Shadow of Foreign Influence," Working Papers 1441, Barcelona School of Economics.

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    More about this item

    Keywords

    climate change; mitigation; adaptation; geoengineering; international environmental agreements;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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