This document analyses certain economic aspects of environmental policy in France, focussing on greenhouse gas emissions, water pollution and discharges in city air. Like most other OECD countries, France has been endeavouring for some years to make its growth environmentally sustainable. These...

We develop an overlapping generations model of growth in which production generates polluting harmful emissions. In order to control pollution, the government implements an emission permits system. However, subject to political constraints, it is not able to assign the optimal quota on...