The allowance allocation under the European emission trading schemes differs fundamentally from earlier cap-and-trade programmes, such as SO₂ and NO_x in the USA. Because of the sequential nature of negotiations of the overall budget, the allocation also has to follow a sequential process. If...

We quantified the volume of free allowances that different national allocation plans proposed to allocate to existing and new installations, with specific reference to the power sector. Most countries continue to allocate based on historic emissions, contrary to hopes for improved allocation...

One of the central debates surrounding the design of the European Union Emissions Trading Scheme is the approach to address carbon leakage concerns. Correctly identifying the economic activities exposed to the risk of carbon leakage represents the first step in mitigating the risk effectively....

This paper critically reviews the literature on embodied carbon in trade and evaluates our present empirical understanding of these flows. A careful comparison of quantitative results from this literature exposes significant inconsistencies. For instance, estimates for emission embodied in world...

This paper analyzes market diffusion in the presence of oligopolistic interaction among firms. Market demand is positively related to past market size because of consumer learning, networks, and bandwagon effects. Firms enter the market freely in each period with fixed costs and compete in...

This paper constructs a model of anticompetitive exclusive dealings with potential downstream competition. Unlike in previous studies, the incumbent can establish a direct retailer with some fixed payment and can offer an exclusive contract to a downstream buyer twice. We show that the existence...

As increasingly complex modelling approaches to quantifying embodied carbon in trade have become popular, the lack of disaggregation has been identified as a key weakness. This paper quantifies embodied carbon in bilateral trade at the product level. This is done using the material balance...