We analyze the effects of free trade on environmental policies in a strategic setting withtransboundary pollution. Trade liberalization can result in a race to the bottom in environmentaloutcomes, making both countries worse off. With command and control policies(quotas), there is no race to the...

The changeover from a situation of Autarky to a situation of Free-Trade alters the trade and production patterns of the participatingcountries which in turn affects the transportation-sector. The amountof transported goods and the directions of the good-flows change.Profit-oriented shipping...

This paper develops a general equilibrium model to measure welfare eects of taxesfor correcting environmental externalities caused by domestic trade, focusing on externalities that arise through exports. Externalities from exports come from a number ofsources. Domestically owned ships, planes,...

This paper measures the extent to which prices exceed marginal costs in the U.S. natural gas distributionmarket during the period 1991-2007. We find large departures from marginal cost pricing in all 50states, with residential and commercial customers facing average markups of over 40%. Based...

Weather inuences our daily lives and choices and has an enormous impact on corporate revenues andearnings. Weather derivatives dier from most derivatives in that the underlying weather cannot be tradedand their market is relatively illiquid. The weather derivative market is therefore incomplete....

By using a choice experiment, this paper focuses on citizens’ preferences for effort-sharingrules of how carbon abatement should be shared among countries. We find that Swedes do notrank the rule favoring their own country highest. Instead, they prefer the rule where allcountries are allowed...

We conduct a large-scale …eld experiment with 2,440 subjects in whichwe exogenously vary the price of contributing to the closest empiricalcounterpart of an in…nitely large public good, climate change mitigation.We …nd that the price e¤ect is robust and negative, but quantitativelyweak, with...

What would be the effect of CO2 pricing on global oil supply and demand? This paper introduces a model describing the interaction between conventional and non-conventional oil supply in a Hotelling framework and under CO2 constraints. The model assumes that non-conventional crude oil enters the...

We investigate the eect of cap-and-trade regulation of CO2 on rm prots byperforming an event study of a CO2 price crash in the EU market. We examinereturns for 90 stocks from carbon intensive industries and 600 stocks in the broadEUROSTOXX index. Firms in carbon intensive, or electricity...