title: The Geopolitical Externality of Climate Policy
abstract: This paper formalizes the geopolitical externality of climate policy and estimates its plausible magnitudes. Specifically, domestic reductions in fossil fuel demand depress global prices, thereby lowering export revenues for resource-rich autocracies – many of which allocate substantial resources to military spending. As a result, climate policy reduces geopolitical and security burdens on Western democracies, offering a “peace dividend” as a co-benefit. Using the European Union’s oil consumptio
journal: Econstor (Econstor)