Klaassen, Ger; Førsund, Finn; Amann, Markus - In: Environmental & Resource Economics 4 (1994) 4, pp. 305-330
This paper explores the analytical and empirical properties of a new method for emission trading according to a fixed exchange rate. The exchange rate is based on the ratios of the marginal costs of abatement in the optimal solution in order to account for the impact of the location of emission...