instruments: pollution taxes, pollution permits and Kyoto-like numerical rules for emissions. The setup is the basic stochastic … neoclassical growth model augmented with the assumptions that pollution occurs as a by-product of output produced and environmental …-best policy instruments. We find that, in all cases studied, pollution permits are the worst policy choice, even when their …

We analyze the formation of environmental policy to regulate transboundary pollution if governments are self … be too high if environmental interests and pollution-intensity of production are very strong; under different …