International emissions trading and the distribution of capital

Yu-Bong Lai

Resource and Energy Economics, 2024, vol. 78, issue C

Abstract: This paper compares two regimes of tradable emission permits, a regime with international permit trade (IPT) and a regime with domestic permit trade (DPT). We focus on the effects of the distribution of firms between countries. Our model combines intra-industry trade with a monopolistically competitive industry. We find that a more equal distribution of firms between countries results in higher global pollution under the DPT regime, while under the IPT regime the global pollution is invariant with the distribution of firms. We also find that international permit trade can either increase or reduce global pollution, depending on the distribution of firms.

Keywords: Environmental regulations; Global warming; Intra-industry trade; Monopolistic competition; Tradable emission permit (search for similar items in EconPapers)
JEL-codes: F12 H23 R12 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0928765524000265
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:resene:v:78:y:2024:i:c:s0928765524000265

DOI: 10.1016/j.reseneeco.2024.101450

Access Statistics for this article

Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders

More articles in Resource and Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu (repec@elsevier.com).