“…The paper starts from the original idea of Schelling (1995), who discusses climate abatement costs and di¤erent policies to support developing countries. The framework is based on the literature on pollution and growth, in particular Withagen (1995), Michel and Rotillon (1995), Bovenberg and Smulders (1995), Smulders and Gradus (1996), Stokey (1998), Taylor (2005, 2010), and on the papers on climate change and growth, see Grimaud et al (2007), and Bretschger and Valente (2011). It is also related to the literature on natural exhaustible resources and growth, especially on Dasgupta and Heal (1974), Solow (1974), Stiglitz (1974), Barbier (1999), Scholz and Ziemes (1999), Xepapadeas (2006), Bretschger and Smulders (2007), and Peretto (2009), and in particular with the two-country resource models provided in Daubanes and Grimaud (2010) and Berlinschi and Daubanes (2012).…”