The so-called Coase Theorem is one of the cornerstones of the Law and Economics approach. This paper investigates whether it is appropriate to apply the Coasean framework in the context of Environmental Law and Economics. Even when transaction costs are zero, it is argued that in the specific...

Emissions trading is becoming increasingly popular in environmental law. Allowances to trade emissions can either be auctioned off or handed out free of charge by means of grandfathering. Although grandfathering is frequently used in emissions trading schemes, it is a popular view in the...