We consider a duopolistic industry in which pollution is a by-product of production and firms are given emission permits that they can trade. The common wisdom is that allowing for trade in emission permits promotes efficiency. We demonstrate that this common wisdom cannot automatically be...

In this paper, we endogenize the timing of policymaking in a simple two-country model of strategic environmental policy. We consider a timing game in which two policymakers non-cooperatively decide their preferred sequence of moves before setting emission tax rates. We show that whether the...

A common-agency model is constructed to investigate how two interest groups a workers' group and an environmentalists' group affect the formation of a capital tax and an environmental policy. The political power of interest groups, which is related to the free-rider problem that they face, is...

This paper provides an answer to the question, are emission taxes an efficient and self-enforcing mechanism to control correlated externality problems? By “correlated externality” we mean multiple pollutants that are jointly produced by a single source but which cause differentiated regional...

There is a growing literature on the causes and consequences of corruption. A common and often unsubstantiated assertion is that countries which exhibit a low level of political competition are more likely to suffer higher levels of corruption. In this paper we examine the effects of corruption...

The U.S. Clean Air Act Amendments of 1990 initiated the first large experiment in the use of market-based regulation to control environmental problems with the introduction of an emissions trading program for sulfur dioxide emissions. Later that decade the second large trading program began for...

Le présent papier s'articule autour des problèmes environnementaux globaux, et se propose de lier les négociations internationales au comportement de précaution. Cela nous conduit à montrer que le comportement de précaution peut aussi bien survenir à la suite d'un échec des négociations...