, we study the effects of a tax on one pollutant in two cases: one where both pollutants face taxes and the second where … important parameters. We demonstrate two important ways that environmental taxes and permits are not equivalent. First, the … affected by this spillover effect. Finally, a numerical exercise helps demonstrate these two ways that taxes and permits differ …

instruments in the two countries: emission taxes and funds allocated for public abatement activities. We examine the implications …

pollution abatement enables us to derive the optimal pollution taxes in terms of the marginal cost of public pollution abatement …. We derive and compare for each country the Nash and cooperative lump-sum and pollution taxes and examine how cross … taxes on net pollution. …

this framework we examine i) the non-cooperative equilibrium consumption taxes and compare them to when pollution is only … local, ii) the cooperative equilibrium consumption taxes and we compare them to the non-cooperative tax rates, and iii …) cases where cooperative taxes are different between countries. In this framework, tax harmonization may not be the optimal …

national level. Our results are based on a comprehensive database of 121 countries. As climate policies we examine carbon taxes … mix. We find that higher carbon taxes and prices of permits in ETS reduce carbon emissions. An increase in carbon taxes by …