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In the past few years permit trading has become a popular policy instrument to achieve emissions reductions or other environmental goals at minimal cost. There are already a number of existing regimes on firm as well as on national level in which permits for SO2, NOX and CO2 emissions but also...
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their allocative effects. Most repercussions can be expected to stem from the effects on the world markets for fossil fuel … scenario are to a large degree determined by its effects on world energy demand and world energy prices. Both findings imply … interaction between the permit market and the world energy markets. …
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