A Note on The Kyoto Protocol, Tradeable Quotas and Firm Survival

Cathrine Hagem

Environmental & Resource Economics, 2002, vol. 22, issue 3, 467-468

Abstract: There is a concern in many countries thatintroducing a tradeable greenhouse-gas quotasystem may lead to closures ofemission-intensive industrial companies.Jebjerg and Lando argue in an article publishedpreviously by this Journal that shutdowns canbe prevented by a generous distribution of freequotas. However, this is only true if thequotas are distributed contingent on continuedproduction. Some of the practical problems withconditional allocation of free tradeable quotascan be avoided by letting all free quotas benon-tradeable. Copyright Kluwer Academic Publishers 2002

Date: 2002
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DOI: 10.1023/A:1016053630292

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