The paper is a general equilibrium analysis of an energy tax reform in a federation. It gives us a tool to measure the welfare effects and the vertical tax externalities of the tax reform. Vertical tax externalities may arise when two government levels impose taxes on common tax bases. We show...

In this paper, we explore energy efficiency policies in the presence of a global environmental problem and international cost interdependency associated with R&D activities. We develop a simple model with two regions where the cost of an appliance in one region depends upon the level of energy...