Is Emission Trading Beneficial?

Jota Ishikawa, Kazuharu Kiyono and Morihiro Yomogida

Discussion papers from Research Institute of Economy, Trade and Industry (RIETI)

Abstract: We develop a two-country (North and South), two-good, general equilibrium model of international trade in goods and explore the effects of domestic and international emission trading under free trade in goods. Whereas domestic emission trading in North may result in carbon leakage by expanding South's production of the emission-intensive good, international emission trading may induce North to expand the production of the emission-intensive good by importing emission permits. Emission trading may deteriorate global environment. North's (South's) emission trading may not benefit South (North). International emission trading improves global efficiency but may not benefit both countries.

Pages: 30 pages
Date: 2011-02
New Economics Papers: this item is included in nep-ene, nep-env and nep-int
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Citations: View citations in EconPapers (5)

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https://www.rieti.go.jp/jp/publications/dp/11e006.pdf (application/pdf)

Related works:
Journal Article: IS EMISSION TRADING BENEFICIAL? (2012)
Working Paper: Is Emission Trading Beneficial? (2011)
Working Paper: Is Emission Trading Beneficial? (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:eti:dpaper:11006

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