We study the interaction of climate policies and investments into fossil and renewable energy generation capacity if policies are set by democratically elected governments and can lead to stranded assets. We develop an overlapping generations model, where elections determine carbon taxation and...

We study the influence of trade exposed producer lobby groups on national climate policies and the formation of a climate coalition if the coalition uses border carbon adjustment (BCA), protecting domestic industries. The countries regulate emissions from commodity production with carbon taxes....

We study the influence of industrial lobbying on national climate policies and the formation of an international environmental agreement if the coalition countries use border carbon adjustments to protect domestic producers. We find that lobbies in the outsider countries favor carbon taxes,...