amounts of "abundantʺ emission rights. Concerns on hot air motivated proposals for caps on emissions trading by the EU. These …

production sectors, bilateral climate policies, asymmetric economies, and asymmetric stochastic shocks, using China and the EU as … spillover effects depends partly on different climate policies. This means that, in terms of supply-side shocks, the EU …-side shocks have a stronger impact on the EU's economy under a separate carbon market. Third, the Ramsey policy rule revealed that …

magnitude and distribution of abatement costs across EU countries vis-à-vis a comprehensive EU emission trading regime. We find … permit trade enhances the secondary terms-of-trade benefits to EU member countries with low marginal abatement costs at the … expense of the other EU member states. …