We envision the creation of a climate liability market to address climate change. Each period, countries would be made liable for their past responsibility in current climate damage. We show that this yields the same first-best incentives to reduce emissions as a Pigovian tax. Also, because...

Arctic oil extraction is inconsistent with the 2°C target. We study unilateral strategies by climate-concerned Arctic countries to deter extraction by others. Contradicting common theoretical assumptions about climate-change mitigation, our setting is one where countries may fundamentally...

Due to meteorological factors, the distribution of the environmental damage due to climate change bears no relationship to that of global emissions. We argue in favor of offsetting this discrepancy, and propose a “global insurance scheme” to be financed according to countries’...