Rosendahl, Knut Einar; Storrøsten, Halvor Briseid - Statistisk Sentralbyrå, Government of Norway - 2008
Allocation of free emissions allowances may distort firms' incentives or have adverse distributional effects. Nevertheless, Böhringer and Lange (2005) show that in a closed emissions trading scheme with a fixed number of firms, a first-best outcome can be achieved if the base year for...