In the context of climate protection policy it has been suggested that global CO2 emissions should be reduced significantly (contraction) and that per capita emissions should gradually be equalized across countries (convergence). This paper uses a dynamic multi-region computable general...

Carbon pricing is on the rise, as evidenced, for example, by the European Commission's proposal to extend the trade in carbon emissions to the building and transport sectors. An important feature of carbon pricing is that it generates revenues which can be rebated to households. Rebating the...