We analyse the optimal design of climate change policies when a government wants to encourage the private sector to undertake significant immediate investment in developing cleaner technologies, but the relevant carbon taxes (or other environmental policies) that would incentivise such...

There are a number of features of climate change which make it one of the most challenging problems confronting policy makers and policy analysts. In this paper we consider three such features: (i) climate change is a global pollutant so there are strategic interactions between governments over...