The Effects of Emission Permits on Growth and the Environment

Tetsuo Ono, 哲生 小野 and テツオ オノ

No 33, Discussion Paper from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University

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.

Keywords: Emission permit; Economic growth; Environmental quality; Overlapping generations (search for similar items in EconPapers)
JEL-codes: D91 O11 Q28 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2001-08
Note: This version: August 2001, This paper is forthcoming in Environmental and Resource Economics.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: The Effects of Emission Permits on Growth and the Environment (2002)
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Persistent link: https://EconPapers.repec.org/RePEc:hit:piedp1:33

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