Slechten, Aurélie - In: Journal of Environmental Economics and Management 66 (2013) 2, pp. 319-336
In a two-period general equilibrium model, I study the effects of intertemporal emission permit trading in a cap-and-trade scheme when firms' investments in abatement have long-term effects. To meet their caps, firms optimally choose levels of trading and investment in each period by equalizing...