Amato, Alessio D; Valentini, Edilio - In: Economics Bulletin 31 (2011) 2, pp. 1451-1462
In this note we extend the analysis developed by Helm (2003) and consider an international emissions trading system (ETS) where the initial allocation of tradeable permits may be chosen non cooperatively, as in Helm, or cooperatively. We first derive conditions guaranteeing that polluting firms...