| Over the past decade, economics has devoted significant attention to describing the consequences of anthropogenic climate change. Two major modes of analysis have emerged. Studies focused on the strategic aspects of national policy decisions---how CO2 abatement policies reflect the global commons nature of climate issues---uniformly rely on stylized, partial equilibrium models with game-theoretic solution concepts. In contrast, a literature more closely linked to international trade uses numerical, general equilibrium models to highlight the importance of the relationships between different world markets in determining the cost and effectiveness of abatement policies. The current study is a synthesis of these two fields---a series of explorations into the nature of the relationship between international trade and the determination of optimal regional abatement policies. |
