Climate protection should use environmental policy instruments that raise revenues, which can be used, for instance, to cut labour taxes to alleviate unemployment in economies suffering from high and persistent unemployment. This paper elaborates the possibilities of an employment dividend of...

We study the optimal choice of abatement intensity and certificate purchase for the case that pollution levels are only partly influenced by abatement levels. We find that this uncertainty makes the complementary use of penalties for exceeding allowed waste levels necessary. Also the...