The cost-effectiveness of the Kyoto Protocol and any similar non-global treaty would be enhanced by attracting as many new countries as possible to integrational emissions trading and achieving these additions as soon as possible. This paper focuses on two forms of compensation that can be used...

We study an environmental policy that (i) tax some emitters while others are covered by a cap-and-trade system and (ii) index the tax level to the permit price. Such a policy could be attractive in a world where abatement costs are uncertain and the regulator has information about the...

Shifting transportation to electrified modes, e.g., rail, is a politically attractive way of reducing greenhouse gas (GHG) emissions from the transportation sector. There is a vivid debate about the effects such a shift has on GHG emission and how these should be assessed and appraised. We argue...

In 2005 EU will launch its emissions trading system (ETS) under which energy intensive firms within EU may trade carbon emission allowances. This system is by many seen as instrumental for EU’s ability to fulfill its Kyoto commitment. At the same time, in what seems to be an ambition to go one...

The experiment reported here tests the case of so-called exclusionary manipulation of emission permit markets, i.e., when a dominant firm ­ here a monopolist ­ increases its holding of permits in order to raise its rivals’ costs and thereby gain more on a product market. Earlier studies have...