The Macroeconomics of Emission Permits: Simple Stylized Frameworks for Short-Run Policy Analysis

Arslan Razmi ()
Additional contact information
Arslan Razmi: Department of Economics, University of Massachusetts, Amherst, MA 01003, USA.

Eastern Economic Journal, 2016, vol. 42, issue 1, 29-45

Abstract: Environmental economics has mostly focused on micro issues pertaining to welfare and efficiency analysis. I develop a general framework to address short-run issues both for a closed economy and for an open one where emission permits are globally traded. Fiscal policy and emission permit issuance can both be used as short-run stabilization tools in a closed economy although the former is ineffective in a small open economy. In a large open economy, issuing emission permits in excess of international agreements remains an effective instrument, although it acts as a beggar-thy-neighbor policy, highlighting the crucial role of global monitoring on macroeconomic grounds.

Date: 2016
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.palgrave-journals.com/eej/journal/v42/n1/pdf/eej201430a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/eej/journal/v42/n1/full/eej201430a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

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:pal:easeco:v:42:y:2016:i:1:p:29-45

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/41302

Access Statistics for this article

Eastern Economic Journal is currently edited by Allan Zebedee and Cynthia Bansak

More articles in Eastern Economic Journal from Palgrave Macmillan, Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().