DP20407 Climate Coalitions with Sophisticated Policy Makers
Government
We study the formation of international climate coalitions with sophisticated policy makers. They strategically predict the consequences of their membership decisions in climate negotiations and use an integrated assessment model of the economy and the climate in their decision making. We analytically characterise the equilibrium number of coalitions and their number of signatories with certain types of heterogeneity. The special structure of our model drastically reduces the computational
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