Joint Design of Emission Tax and Trading Systems

Bernard Caillaud () and Gabrielle Demange
Additional contact information
Bernard Caillaud: PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique

Working Papers from HAL

Abstract: This paper analyzes the joint design of fiscal and cap-and-trade instruments in climate policies under uncertainty. Whether the optimal mechanism is a mixed policy (with some firms subject to a tax and others to a cap-and-trade) or a uniform one (with all firms subject to the same instrument) depends on parameters reecting preferences, production, and, most importantly, the stochastic structure of the shocks affecting the economy. This framework is then used to address the issue of the non-cooperative design of climate regulation systems in various areas worldwide under uncertainty. We characterize the resulting ineficiency, we show how the Pareto argument in favor of merging ETS of different regions is reinforced under uncertainty, and we discuss the non-cooperative design of mixed systems.

Keywords: climate policies; cap-and-trade mechanisms; emission tax; uncertainty (search for similar items in EconPapers)
Date: 2016-07
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01112185v2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://shs.hal.science/halshs-01112185v2/document (application/pdf)

Related works:
Journal Article: Joint Design of Emission Tax and Trading Systems (2017)
Working Paper: Joint design of emission tax and trading systems (2017)
Working Paper: Joint design of emission tax and trading systems (2017)
Working Paper: Joint Design of Emission Tax and Trading Systems (2016)
Working Paper: Joint Design of Emission Tax and Trading Systems (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:halshs-01112185

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().