| Sumario: | The writers examine global warming as an asymmetric transboundary externality in a win-lose scenario, using a two-country model to investigate the effects of global warming on resource allocations, global and national welfare, and the global-warming stock. They determine that the winner country's greenhouse gas emissions are positively related to the loser's but that the loser's are negatively related to the winner's. They conclude that although it is unlikely that an accord will be reached between the two sides, agreements that take the current greenhouse gas stock as a given are more likely to be successful than those that attempt to change this stock.
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