Starting in 2005, the EU will implement a CO<Subscript>2</Subscript> emissions trading scheme. We show that the outspoken objectives of economic efficiency and free allocation of allowances are incompatible with harmonized allocation rules. The latter would be necessary to avoid unequal changes of the financial...</subscript>

<Para ID="Par1">We investigate political economy determinants of energy tax differentiation across industries. Based on a theoretical common agency model, we show that differences in the ease of energy demand reductions across industries explain the pattern of tax differentiation: if the government is...</para>

Carbon leakage provides an efficiency argument for differentiated emission prices in favor of emission-intensive and trade-exposed sectors under unilateral climate policy. However, differential emission pricing can be used as a beggar-thy-neighbor policy to exploit terms of trade. Adopting an...

Carbon control policies in OECD countries commonly differentiate emission prices in favor of energy-intensive industries. While leakage provides a efficiency argument for differential emission pricing, the latter may be a disguised beggar-thy-neighbor policy to exploit terms of trade. Using an...

Sustainable development, climate policy, biodiversity conservation - all these represent flash points at the intersection of environmental science, economics, and public policy. This volume offers a snapshot of environmental economic research on a range of policy-relevant problems. Academic...

The Clean Development Mechanism established under the Kyoto Protocol allows industrialized Annex I countries to offset part of their domestic emissions by investing in emissions-reduction projects in developing non-Annex I countries. Computable general equilibrium analysis of the Clean...

This report investigates the environmental impacts of Russia's accession to the World Trade Organization. A 10-region, 30-sector model of the Russian economy is developed. The model is innovative and more accurate empirically in that it contains foreign direct investment, imperfectly competitive...