Eichner, Thomas; Pethig, Rüdiger - In: European Economic Review 53 (2009) 6, pp. 625-635
We consider a stylized model of the hybrid CO2 emissions control in the EU. A group of countries operates a joint emissions trading system (ETS) covering only part of each country's economy. The countries levy an emissions tax in the rest of their economy and, possibly, an additional tax in...