Partial International Emission Trading

Bouwe Dijkstra, Edward Manderson () and Tae-Yeoun Lee ()

Discussion Papers from University of Nottingham, GEP

Abstract: In a model inspired by the EU Emissions Trading Scheme, non-cooperative countries allocate their emissions to internationally trading and non-trading sectors. Each country is better off with trading than without, and aggregate welfare is maximized with all sectors in the trading scheme. We simulate the effects of expanding the trading scheme in a two-country model with quadratic abatement costs. If only the original trading sector is asymmetric between countries, the welfare change is always positive and the same in both countries. If only the additional trading sector is asymmetric, one country might lose, but there is an aggregate welfare gain. If only the non-trading sector is asymmetric, both countries always gain.

Keywords: International emission trading; EU Emission Trading Scheme (search for similar items in EconPapers)
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.nottingham.ac.uk/gep/documents/papers/2008/08-27.pdf (application/pdf)

Related works:
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:not:notgep:08/27

Access Statistics for this paper

More papers in Discussion Papers from University of Nottingham, GEP School of Economics University of Nottingham University Park Nottingham NG7 2RD. Contact information at EDIRC.
Bibliographic data for series maintained by Hilary Hughes ().