EconPapers    
Economics at your fingertips  
 

A theory of gains from trade in multilaterally linked ETSs

Baran Doda, Simon Quemin, Luca Taschini
Authors registered in the RePEc Author Service: Simon Quemin and Luca Taschini

No 275, GRI Working Papers from Grantham Research Institute on Climate Change and the Environment

Abstract: Linkages between emissions trading systems (ETSs) have an important role to play in the successful, cost-effective implementation of the Paris Agreement. While the theory of bilateral linkages is well established, we know relatively little about the gains from trade in a multilaterally linked system, and less still about how they are shared among jurisdictions participating in the system. We characterize these gains for an arbitrary linkage coalition, show how they can be decomposed into gains in the coalition’s internal bilateral linkages, and prove that linkage is superadditive. Our theoretical results imply the global market may not emerge endogenously and a quantitative exercise shows that this concern may have some validity in practice.

New Economics Papers: this item is included in nep-des and nep-env
Date: 2017-09
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.lse.ac.uk/GranthamInstitute/wp-content/ ... 275-Doda-et-al-1.pdf

Related works:
Working Paper: A Theory of Gains from Trade in Multilaterally Linked ETSs (2017) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lsg:lsgwps:wp275

Access Statistics for this paper

More papers in GRI Working Papers from Grantham Research Institute on Climate Change and the Environment Contact information at EDIRC.
Bibliographic data for series maintained by The GRI Administration ().

 
Page updated 2019-10-18
Handle: RePEc:lsg:lsgwps:wp275