Greenhouse gas emission trading has become more and more important in the context of climate change. Recently, a discussion on trading on entity (i.e. company) level has started. Emitters likely to be obliged to participate have argued for an initial allocation of the emission rights free of...

This paper develops a mechanism to correct production externalities between several parties, such as externalities motivating environmental policy between countries, using asset ownership. Efficiency can be obtained if each party retains less than the full share of their own gain from resource...

The present paper analyzes the impact of a climate coalition's border carbon adjustment on emissions from commodity production, welfare and the coalition size. The coalition implements border carbon adjustment to reduce carbon leakage and to improve its terms of trade, while the fringe abstains...

We obtain optimal emission levels and abatement expenditures in a finite-horizon transboundary pollution game with emission trading between two regions.We show that emission trading has significant impact on the optimal strategies and profits of the two regions. We find that cooperation between...

We obtain optimal emission levels and abatement expenditures in a finite-horizon transboundary pollution game with emission trading between two regions. We show that emission trading has significant impact on the optimal strategies and profits of the two regions. We find that cooperation between...

We explore the possibility of achieving a cooperative outcome when governments act non-cooperatively in a strategic environmental policy model where emission permit markets are linked. We introduce a specific distribution scheme of the permit revenues between the exporting countries so as to...

The purpose of this paper is to consider a valuation of GHG emission rights, especially CERs from CDM projects with a real option and game-theoretic approach. There has been no study that tried to prove a valuation of them with a real option and game-theoretic approach.The following results were...

NOTE: The following is a description of the paper and not the actual abstract. Equilibrium tax and expenditure policies are studied in a federation consisting of a federal government and several state governments. Each state begins with an initial distribution of residents of different ability...

We analyse a principal-agent relationship in the context of international climate policy. Principals in two countries first decide whether to merge domestic emission permit markets to an international market, then delegate the domestic permit supply to an agent. We find that principals select...