I. Bargaining and Climate Coalitions

Notwithstanding great progress in scientific and economic under-standing of climate change, it has proven difficult to forge inter-national agreements because of free-riding, as seen in the defunct Kyoto Protocol. This study examines the club as a model for interna-tional climate policy. Based on economic theory and empirical mod-eling, it finds that without sanctions against non-participants there are no stable coalitions other than those with minimal abatement. By contrast, a regime with small trade penalties on non-participants, a Climate Club, can induce a large stable coalition with high levels o