Abstract
This paper investigates strategic trade policies as a response to negative externalities linked to climate engineering. Parties negatively affected, or which only perceive damages, may react to geoengineering by deploying trade sanctions, i.e. the imposition of tariffs. By introducing a dynamic trade model, we show that geoengineering-averse countries have an incentive to implement or increase existing tariffs when the other country uses geoengineering. Our contribution is to highlight that potential consequences on trade should be taken into account before climate engineering techniques are applied. This is particularly crucial in our globalized world since a successful climate policy demands large scale if not global cooperation.
Highlights
The extraction and use of fossil fuels arising from the industrial revolution have brought tremendous and so far unseen growth in populations and incomes.1 these gains and the modern way of life have been bought by future damages due to anthropogenic changeElectronic supplementary material The online version of this article contains supplementary material, which is available to authorized users.Dyn Games Appl (2018) 8:573–587 in the composition of Earth’s atmosphere and the consequent increases in temperature
The issue is inherently dynamic as global warming is caused by the stock of greenhouse gases accumulated since the industrial revolution
Further problems arise from the issue of proper time discounting, economic and meteorological uncertainties as well as geographic asymmetry. (Some latitudes will gain from global warming.) If these problems were not enough, one must add that governments cannot commit which renders R&D into alternatives problematic and at least will slow them down [29]
Summary
The extraction and use of fossil fuels arising from the industrial revolution have brought tremendous and so far unseen growth in populations and incomes. these gains and the modern way of life have been bought by future damages due to anthropogenic change. These aerosols increase reflectivity and directly influence Earth’s radiation balance This method could effectively and timely lower global average temperatures at manageable projected costs. Climate modellers expect highly asymmetric effects due to changing precipitation patterns and, in general, warn of many unintended consequences not foreseen at present [1,23] Another crucial argument against SRM is that once deployed, it is hard to stop even if evidence of substantial harm shows up, because terminating would lead to a sudden jump in temperatures. 3 we investigate a setup where one country has monopoly power in a foreign market We consider both cases where the trade partner, which is averse to geoengineering, accounts for temperature change and where it does not.
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