Well designed emission trading systems are environmentally effective and economically efficient instruments to address emissions of CO2 and other greenhouse gases. This paper discusses interactions that can occur when a cap-and-trade based emission trading system is combined with overlapping...

We present a general-equilibrium behavioural microsimulation model designed to assess long-run macroeconomic, fiscal and social consequences of reforms to the tax and transfer system. The behaviour of labour supply is assessed along both the extensive and intensive margins, by merging the...

Population growth is often viewed as a most oppressive global problem with respect to environmental deterioration, but the relationships between population development, economic dynamics and environmental pollution are complex due to various feedback mechanisms. We analyze society’s economic...

We develop a general equilibrium OLG model to evaluate a wide menu of popular redistributive policies in a unified context. We work in two steps: First, we study how initial conditions in human and financial capital, as inherited from family background, shape individuals' human capital, and...

Based on an in-depth literature review and responses to a survey among OECD member countries, this paper discusses the use of flexibility mechanisms in environmental regulations. Such mechanisms can provide flexibility as to how a given environmental improvement is achieved, regarding where...