This paper discusses ways in which the next climate agreement ­ a renegotiated <p> Kyoto Protocol or a second-period agreement ­ can be made more cost-effective. The <p> discussion focuses on the design of international emissions trading to facilitate early <p> participation by developing countries....</p></p></p>

This paper takes on the issue of ‘Prices vs. Quantities’, see Weitzman (1974), applied to environmental regulations under uncertainty. It is shown that, from an efficiency point of view, it is generally preferable to divide the economy into two parts, one regulated through a tax and the...

The purpose of the laboratory tests reported here is to identify a well-functioning design, tailored for an upcoming unique experiment using real-world relevant decision makers for carbon emission reduction trade among four countries committed to binding carbon emission limits, a form of...

In 2005 EU will launch its emissions trading system (ETS) under which energy intensive firms within EU may trade carbon emission allowances. This system is by many seen as instrumental for EU’s ability to fulfill its Kyoto commitment. At the same time, in what seems to be an ambition to go one...

The cost-effectiveness of the Kyoto Protocol and any similar non-global treaty would be enhanced by attracting as many new countries as possible to integrational emissions trading and achieving these additions as soon as possible. This paper focuses on two forms of compensation that can be used...

The experiment reported here tests the case of so-called exclusionary manipulation of emission permit markets, i.e., when a dominant firm ­ here a monopolist ­ increases its holding of permits in order to raise its rivals’ costs and thereby gain more on a product market. Earlier studies have...

In discussions about the policy design of domestic emission trading, e.g., when implementing the <p> Kyoto Protocol, the two permit allocation alternatives ­ auctioning and allocation gratis <p> (grandfathering) ­ are often pitted against each other as representing utopian cost-effectiveness and <p>...</p></p></p>

The hypothesis that European unemployment is the rigid relative wage mirror-image of increased wage dispersion in the US is explored. The <p> framework is a two sector –manufacturing and services- model with <p> skilled and unskilled labor. A proxy for skill-biased technical progress (SBTP) is...</p></p>

This paper examines the optimal instrument choice to control emissions under uncertainty. A hybrid regulation mechanism is developed that contains cap-and-trade, emissions taxes and socalled safety valves as special cases. This makes it possible to examine optimal policy choice and the resulting...

The Experiment mimics carbon emissions trade among twelve industrialized countries during the end of a five-year-long trading period when traders are likely to have nearly full information about the underlying net demand. Trade is assumed to be governed by so-called double-auction rules. The...