Bréchet, Thierry; Jouvet, Pierre-André; Rotillon, Gilles - Chaire d'Économie du Climat, Université … - 2011
In this paper we study the optimal growth path and its decentralization in a twosector overlapping-generations model with pollution. One sector (power generation) is polluting and the other (final good) is not. Pollution is regulated by tradable emission permits. The issue is whether the optimal...