Strategic environmental policy games are usually based on simultaneous decision making and reach the conclusion that the policy choices are strategic substitutes. Empirical evidence, however, shows that the introduction of a regulatory instrument usually follows a consecutive pattern that is...

Policy diffusion refers to the process by which a political innovation like the introduction of a novel emission tax disseminates over time among countries. In order to analyze this issue from an economic point of view we develop a simple two-country-model of the taxation of emissions in...

We study environmental policy in a two nation world in which there is strategic behavior by governments and polluting firms. Two issues are analyzed. First, the conditions under which the conduct of unilateral environmental policy by a nation in a Bertrand game will immiserize that nation, are...

In this paper we study some of the consequences of national environmental policy in a strategic international setting. Two broad questions are analyzed. First, we examine the circumstances under which the pursuit of environmental policy by a country in a Cournot game will make that country worse...