amounts of "abundantʺ emission rights. Concerns on hot air motivated proposals for caps on emissions trading by the EU. These …

base case we find that the EU implementation of the Kyoto Protocol implies low overall costs and a relatively even cost … marginally but changes the cost distribution significantly, holding total EU emissions constant. …

magnitude and distribution of abatement costs across EU countries vis-à-vis a comprehensive EU emission trading regime. We find … permit trade enhances the secondary terms-of-trade benefits to EU member countries with low marginal abatement costs at the … expense of the other EU member states. …