It is tricky to design local regulations on global externalities, especially so if firms are mobile. We show that when costs and outside options are firms' private information, the threat of firm relocation leads to local regulations that are stricter, not looser. This result is general and...

We provide evidence of informed trading in the European carbon market. We adapt Easley et al.'s (1996) PIN methodology to the particularities of this market by isolating the trading activity on the two carbon offsets: European Union Allowances (EUAs) and Certified Emission Reductions (CERs). We...

Environmental regulations and their enforcement play a critical role in reducing emissions and their devastating effects on humanity and the environment. However, many developing countries have large informal sectors-accounting for more than 70 percent of total employment, that operate outside...

To reduce carbon emissions and address environmental issues, a growing number of industries begin investing in green technologies to produce green products. This study examines manufacturer encroachment with carbon emission reduction and asymmetric information to investigate the effects of...