Sanz, Nicolas; Schwartz, Sonia - In: Economic Modelling 35 (2013) C, pp. 374-383
This paper analyzes the effects of pollution permit markets on equilibrium employment in a wage … wage tax or the revenue from a pollution permit auction. We show that a permit market weakens the trade unions' market … power. Furthermore, whatever the method of financing unemployment benefits, the choice of the pollution cap is always …