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This book synthesises several studies on the potential global impacts of two fundamental international policy initiatives: (i) multilateral agreements on climate protection strategies and (ii) trade agreements towards global trade liberalisation. Although these initiatives are not directly linked, they interrelate in subtle, yet important ways. Based on theoretical analyses and numerical simulations, the book provides guidelines on efficient strategies for climate change mitigation, implementing the framework of the Kyoto Protocol and the provided flexibility instruments, hereby accounting for interrelationships with existing and possible trade agreements on various levels. The analyses incorporate important real-world features, such as imperfect market structures, trade liberalisation settings, risk or transaction costs, that may substantially influence the magnitude and even the sign of policy impacts.
