Scandinavian Working Papers in Economics

Memorandum,
Oslo University, Department of Economics

OPEC's Response to International Climate Agreements.

J. Braten and R. Golombec

Abstract: This paper studies a game between a group of countries that have agreed to participate in an international climate agreement ( the signatories) and OPEC. The purpose of the signatories is to design carbon taxes that maximize their total net income, given a goal on global carbon emissions. As response to the agreement, OPEC imposes an oil tax on itd members states that maximizes OPEC's profits.

Keywords: NATURAL RESOURCES; CLIMAT; AIR POLLUTION

JEL-codes: L71; Q20; Q25; H3

23 pages, 1996

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