The Kyoto Protocol allocates tradable emission allowances (AAUs) to developed countries, but they are free to choose a set of policy instruments to comply with these targets. We compare two different policy instruments: a tax and purely domestic tradable permits, for the European Union, the US...

Border adjustments are currently discussed to limit the possible adverse impact of climate policies on competitiveness and carbon leakage. We discuss the main choices that will have to be made if the European Union implements such a system alongside the EU ETS. Although more analysis is required...