Strategic Effects of Future Environmental Policy Commitments: Climate Change, Solar Radiation Management and Correlated Air Pollutants

45 Pages Posted: 6 Oct 2013

See all articles by Jingwen Qu

Jingwen Qu

Georgia Institute of Technology

Emilson Delfino Silva

University of Alberta - Department of Marketing, Business Economics & Law

Date Written: September 3, 2013

Abstract

We study the effects of environmental policy commitments in a futuristic world in which solar radiation management (SRM) can be utilized to reduce climate change damages. Carbon and sulfur dioxide emissions (correlated pollutants) can be reduced through tradable permits. We show that if both nations simultaneously commit to carbon permit policies, national SRM levels rise with the carbon quotas. Alternatively, if they simultaneously commit to SRM policies, the global temperature falls with each unit increase in the global SRM level. We also demonstrate that a nation always prefers to be a leader in either SRM or carbon policy.

Keywords: strategic environmental policy, policy commitments, correlated pollutants, solar radiation management, climate change

JEL Classification: C72, D62, D78, H41, Q41, Q53, Q54, Q58

Suggested Citation

Qu, Jingwen and Delfino Silva, Emilson, Strategic Effects of Future Environmental Policy Commitments: Climate Change, Solar Radiation Management and Correlated Air Pollutants (September 3, 2013). University of Alberta School of Business Research Paper No. 2013-1316. Available at SSRN: https://ssrn.com/abstract=2336243 or http://dx.doi.org/10.2139/ssrn.2336243

Jingwen Qu

Georgia Institute of Technology ( email )

Atlanta, GA 30332
United States

Emilson Delfino Silva (Contact Author)

University of Alberta - Department of Marketing, Business Economics & Law ( email )

Edmonton, Alberta T6G 2R6
Canada

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