An effective climate agreement should simultaneously foster broad participation, high ambition, and sufficient compliance: this is the ‘effectiveness trilemma’. While the Paris Agreement has been acclaimed for spurring universal participation, its mitigation mechanism—an unenforced...

Recent updates on the United Kingdom’s strategies on climate change devoted scant attention to Brexit. Based on this, one could imagine that Brexit will have little impact on the UK’s policies for climate change mitigation. This paper presents the results of qualitative research that coupled...

This paper provides an overview of the Warsaw Mechanism on Loss and Damage and the treatment of the issue under the UNFCCC up to COP 20 in Lima, Peru. The gradual emergence of the issue in the climate negotiations is tracked, leading to the creation of the Warsaw Loss and Damage Mechanism in...

This study examines the welfare implications of border carbon adjustments (BCAs) in a globalized economy characterized by international trade and cross-border pollution (CBP). The model predicts that adopting BCAs is a weakly dominant strategy and global welfare is maximized when at least one...

For many observers, the Paris Agreement signaled a historic breakthrough in addressing the problem of global warming. In its basic design, however, the Agreement is far from novel. Its dependence on each nation's self-determined pledge to reduce greenhouse gases mirrors the domestic policy...

This paper is part of a debate on the effectiveness of the compliance system under the Paris Agreement on climate change. It makes the case in support of the facilitative approach to compliance adopted in Paris and implemented through the Paris Rulebook. The paper argues that an enforcement...

Examining how climate and other environmental regulatory risks affect bond risk and pricing, we find that bond credit ratings and yield spreads appear to be influenced by a firm's environmental performance along with its regulatory conditions. Firms with poor environmental profiles tend to have...