Recently, there has been a large output dealing with the implications of unilateral climate policies by a subset of countries. Is  the “virtuous” behaviour by some better for climate change. The answer, broadly speaking, seems to be “No”. This is due to the possibility of a “green paradox”–oil-exporting countries could reduce the price oil and cause oil-importers to leave total emissions unchanged, and, also possibly bringing the time profile of emissions forward. In this presentation, I point out that some of the papers allow neither for international borrowing and lending, nor domestic investment. Thus they are incapable of explaining the change in saving and investment, when the green paradox happens. I correct these shortcomings by allowing for international borrowing and domestic capital accumulation in a two-period model.