Coalition Formation and the Ancillary Benefits of Climate Policy.

by Michael Finus and D.T.G. Rübbelke

- Several studies found ancillary benefits of environmental policy to be of considerable size. These additional private benefits imply not only higher cooperative but also noncooperative abatement targets. However, beyond these largely undisputed important quantitative effects, there are qualitative and strategic implications associated with ancillary benefits: climate policy is no longer a pure but an impure public good. In this paper, the authors investigate these implications in a setting of non-cooperative coalition formation.

Finus, M. and D.T.G. Rübbelke (2008). "Coalition Formation and the Ancillary Benefits of Climate Policy." Feem Working Paper 62.2008, Jul 2008.