Discussion Papers no. 626

International emissions trading with endogenous taxes

Abstract: Motivated by the climate problem, this paper examines some effects of international cap & trade when national quotas result from strategic choice. In contrast to the fairly optimistic tone of closely related literature, the tenor of our results is pessimistic. We find that though an international permit market may flourish, it will mainly redistribute income. As far as emissions reductions are concerned, the classical, rather inefficient, noncooperative outcome will prevail, regardless of the presence of cap & trade.

Om publikasjonen

Tittel

International emissions trading with endogenous taxes

Ansvarlige

Odd Godal, Bjart Holtsmark

Serie og -nummer

Discussion Papers no. 626

Utgiver

Statistics Norway

Emne

Discussion Papers

Antall sider

23

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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