On pollution permits and abatement

Hamid Beladi, Lu Liu and Reza Oladi

Economics Letters, 2013, vol. 119, issue 3, 302-305

Abstract: We construct a dynamic general equilibrium model of pollution and study in a holistic way the environmental policies, whereby government sets up emission caps and sells emission permits at a competitive price which can be viewed as an emission tax. Then, it uses the collected tax revenues to finance public abatement activities. We characterize a steady-state equilibrium and show how it changes with the size of the economy and with a change in natural pollution absorption rate.

Keywords: Pollution permits; Abatement; International trade (search for similar items in EconPapers)
JEL-codes: F1 Q5 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176513001250
Full text for ScienceDirect subscribers only

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:eee:ecolet:v:119:y:2013:i:3:p:302-305

DOI: 10.1016/j.econlet.2013.03.016

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().