One of the most paralyzing obstacles to adopting climate policies is the genuine need for (and difficulty getting) international cooperation on efforts to reduce emissions. As I discussed in my previous post, perceptions can differ over how strongly and when different countries need to act. Nevertheless, eventually all nations will have to constrain and reduce their emissions if we’re going to stop the build up of greenhouse gases in the atmosphere. Nations that refuse to do their fair share will make climate policies less effective and harder to implement for everyone else.
Today I’ll briefly mention two strategies for encouraging international cooperation on emissions reductions: 1) national approaches that automatically respond to international efforts, and 2) trade penalties for countries that subsidize their industries’ greenhouse gas emissions. (more…)