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Does leadership in policy setting reduce pollution and make countries better off?

Author

Listed:
  • Ornella Tarola

    (UNIROMA - Università degli Studi di Roma "La Sapienza" = Sapienza University [Rome])

  • Emmanuelle Taugourdeau

    (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique, IP Paris - Institut Polytechnique de Paris)

Abstract

In light of the ongoing debate on Common But Differentiated Responsibilities (CBDR), we wonder whether it is worthwile for industrialized countries to take the lead in reducing emissions, rather than acting simultaneously with less advanced countries. To do this, we compare national payoffs and global emissions in each situation. We also examine whether industrial leakage is an inevitable outcome of asymmetric policies with differentiated abatement responsibilities and, if so, whether unambigously hurts the more industrialized countries. We show that leadership can improve payoffs while reducing global emissions, even though these goals appear to be at odds.

Suggested Citation

  • Ornella Tarola & Emmanuelle Taugourdeau, 2024. "Does leadership in policy setting reduce pollution and make countries better off?," Working Papers hal-04765513, HAL.
    • Handle: RePEc:hal:wpaper:hal-04765513
    Note: View the original document on HAL open archive server: https://cnrs.hal.science/hal-04765513v1
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