Buy coal? Deposit markets prevent carbon leakage

Research, Preprint OPEN
Harstad, Bård;
  • Publisher: Munich: Center for Economic Studies and Ifo Institute (CESifo)
  • Subject: Zeitkonsistenz | F55 | environmental agreements | Erdölkonzession | supply vs. demand side policies | Internationale Umweltpolitik | Q54 | trade policies | Q58 | Fossiler Energieträger | Industrieverlagerung | Internationale Handelspolitik | climate change | Coase | Emissionshandel | H23 | the green paradox | carbon leakage | Coase, climate change, carbon leakage, supply v demand side policies, trade policies, the green paradox, and environmental agreements | Klimaschutz | Theorie
    • jel: jel:Q58 | jel:Q54 | jel:F55 | jel:H23
      ddc: ddc:330

If a coalition of countries implements climate policies, nonparticipants tend to consume more, pollute more, and invest too little in renewable energy sources. In response, the coalition's equilibrium policy distorts trade and is not time-consistent. This paper derives ... View more
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