Abstract: We study the effects of environmental policy commitments in a 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 the global temperature rises with each unit increase in global carbon emissions when the nations simultaneously commit to carbon policies. 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.
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