In this paper, we analyze technology transfers (TT) and tradable emission rights, which are core issues of the ongoing climate negotiations. Subsidizing TT leads to the adoption of better abatement technologies in developing countries, thereby reducing the international permit price. This is...

To date, border adjustment measures in the form of emissions allowance requirements (EAR) under the U.S. proposed cap-and-trade regime are the most concrete unilateral trade measure put forward to level the carbon playing field. If improperly implemented, such measures could disturb the world...

After the climate conferences in Copenhagen and Cancun, it is likely that the EU remains more ambitious regarding greenhouse gas reduction targets than other countries. The possible problem of carbon leakage and instruments to tackle it therefore remains an important issue in the European...

We develop and discuss the three pathways to European Greenhouse Gas Emissions Trading: a top-down scheme based on the Kyoto Protocol of the UNFCCC, a bottom-up scheme linking national trading systems of EU Member States, and an EU-wide regional scheme based on the founding principles of the...

This paper proposes and analyzes a stationary equilibrium model for a competitive industry which endogenously determines the carbon price necessary to achieve a given emission target. In the model, firms are identified by their level of technology and make production, entry, and abatement...

A method is presented for computing long-term greenhouse gas emission pathways for both industrial ("Annex B") countries and developing ("non-Annex B") countries. This method combines two main factors: (i) climate protection goals, in the form of targets for stabilising CO2 in the atmosphere,...

We analyze non-cooperative international climate policy in a setting of political competition by national interest groups. In the first stage, countries decide whether to set up an international emission permits market, which only forms if it is supported by all countries. In the second stage,...

The purpose of this paper is to analyse whether the presence of Hot Air trading jeopardizes the environmental target of an international environmental agree-ment. We argue that Hot Air can be used as an implicit side-payment mecha-nism to actually bring about higher environmental protection...

Latest findings of climate change research indicate that anthropogenic greenhouse gas emissions since the beginning of the industrial revolution have significantly contributed to the observed rise in global mean temperature. In addition, a further rise, with the potential passing of critical...