In this comment, I analyze Damania's political economy model (Environmental and Resource Economics 13: 415–433, 1999), correcting some flaws and clarifying some ambiguities. I arguethat the political parties are identical at the outset of the game. Onlyafter the parties have chosen the...

We examine whether an economy can have a bad (small or no formal sector, high taxes) as well as a good (small or no informal sector, low taxes) equilibrium. When the government maximizes instantaneous formal sector welfare, this can occur if the elasticity of average to marginal cost for the...

In this paper we model an oligopoly where .rms invest in abatement technologies and emissions are taxed by the government. We show that a stricter environmental policy does not necessarily lead to an increase in .rms.R&D investment into cleaner production methods. In fact, the emission-to-output...

We consider an international emissions trading scheme with partial sectoral and regional coverage. Sectoral and regional expansion of the trading scheme is beneficial in aggregate, but not necessarily for individual countries. We simulate international CO2 emission quota markets using marginal...

Books reviewed: Masayoshi Tsurumi, Financial Big Bang in Asia R.K. Turner, I.J. Bateman, W.N. Adger, The Economics of Coastal and Water Resources: Valuing Environmental Functions Magnus Blomstrom and Linda S. Goldberg, Topics in International Economics: A Festschrift in Honor of Robert E. Lipsey...

Books reviewed in this article: Warwick J. McKibbin and Peter J. Wilcoxen - Climate Change after Kyoto: Blueprint for a Realistic Approach Ludger Woessmann - Schooling and the Quality of Human Capital Mordechai E. Kreinin and Michael G. Plummer - Economic Integration and Development: Has...

We develop a new measure of installation-level environmental compliance costs under an Emissions Trading System (ETS) by estimating normalized demand curves of permits sector-by-sector. Our measure reflects installation-level compliance cost deviations within-sector and it is scaled by both the...