Is Emission Trading Beneficial?

Jota Ishikawa, Kazuharu Kiyono and Morihiro Yomogida

Global COE Hi-Stat Discussion Paper Series from Institute of Economic Research, Hitotsubashi University

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.

Keywords: global warming; emission quota; emission trading; carbon leakage; Kyoto Protocol (search for similar items in EconPapers)
JEL-codes: F18 (search for similar items in EconPapers)
Date: 2011-03
New Economics Papers: this item is included in nep-ene, nep-env and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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http://gcoe.ier.hit-u.ac.jp/research/discussion/2008/pdf/gd10-180.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:hst:ghsdps:gd10-180

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