One of the proposed alternatives to Kyoto's cap-and-trade approach is a regime based on an internationally harmonized carbon tax. In this paper, we consider and compare the enforcement problems associated with a tax regime and a cap-and-trade regime, respectively. The paper tries to convey two...

The developed countries can meet part of their Kyoto commitments by investing in emission-reducing projects in developing countries (the Clean Development Mechanism, CDM). Since the developing countries have so far not been willing to accept binding emission commitments, the CDM has been the...

Using a non cooperative climate policy game applied in the literature, we find that an agreement with international emissions trading leads to increased emissions and reduced efficiency.

The developed countries can meet part of their Kyoto commitments by investing in emission-reducing projects in developing countries (the Clean Development Mechanism, CDM). Since the developing countries have so far not been willing to accept binding emission commitments, the CDM has been the...

One of the proposed alternatives to Kyoto’s cap-and-trade approach is a regime based on an internationally harmonized carbon tax. In this paper, we consider and compare the enforcement problems associated with a tax regime and a cap-and-trade regime, respectively. The paper tries to convey two...

Using a non cooperative climate policy game applied in the literature, we find that an agreement with international emissions trading leads to increased emissions and reduced efficiency.