Valuing Tradable CO2 Permits for OECD Countries

Welfare Gains under Tradable CO2 Permits

Introduction It is easy to understand the opposition to liberalized trade in established markets: Domestic producers loose from increased foreign competition. It is harder to understand the opposition to creating markets, including international markets, where they currently do not exist. Many economists and policymakers have proposed establishing tradable carbon permits to decrease the cost of...

Tradable Permits vs Ecological Dumping

In this paper we examine an alternative policy scenario, where governments allow polluting …rms to trade permits in a strategic environmental policy model. We demonstrate, among other things, that with no market power in the permits market, governments of the exporting …rms do not have an incentive to under-regulate pollution in order to become more competitive. This strategic e¤ect is reversed...

Tradable Permits vs Ecological Dumping

In this paper we examine an alternative policy scenario, where governments allow polluting …rms to trade permits in a strategic environmental policy model. We demonstrate, among other things, that with no market power in the permits market, governments of the exporting …rms do not have an incentive to under-regulate pollution in order to become more competitive. This strategic e¤ect is reversed...

Tradable Pollution Permits and the Regulatory Game

This paper analyzes polluters’ incentives to move from a traditional command and control (CAC) environmental regulatory regime to a tradable permits (TPP) regime. Existing work in environmental economics does not model how firms contest and bargain over actual regulatory implementation in CAC regimes, and therefore fail to compare TPP regimes with any CAC regime that is actually observed. This ...

Ex Post Evaluation of Tradable Permits: