The Effects of Emission Permits on Growth and the Environment

Tetsuo Ono

Environmental & Resource Economics, 2002, vol. 21, issue 1, 75-87

Abstract: We develop an overlapping generations model of growth and the environment in which industrial firms produce environmentally harmful emissions. A government controls the emissions by assigning emission quotas to firms, and permits could be issued and freely traded as financial instruments across firms on the basis of the quotas. We show that an environmental policy that decreases an aggregate number of emission quotas could degenerate economic growth and lower environmental quality in the long run. We also show the implications of this result for environmental policy. Copyright Kluwer Academic Publishers 2002

Keywords: economic growth; emission permit; environmental quality; overlapping generations (search for similar items in EconPapers)
Date: 2002
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Citations: View citations in EconPapers (39)

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Working Paper: The Effects of Emission Permits on Growth and the Environment (2001)
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DOI: 10.1023/A:1014595532338

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