European spatial and urban development policies, environmental integration, strategic environmental assessment, European spatial development perspective (ESDP), trans-European transport network (TEN), INTERREG, URBAN

For any emission trading system (ETS) with quantity-based endogenous supply of allowances, there exists a negative demand shock, e.g. induced by abatement policy, that increases aggregate supply and thus cumulative emissions. We prove this green paradox for a general model and then apply it to...