The issue of how to allocate pollution permits is critical for the political sustainability of any cap-and-trade system. Under the objective of offsetting firms' losses resulting from the environmental regulation, we argue that the criteria for allocating free allowances must account for the...

Under imperfect competition, the effect of a cap-and-trade system on indus- try profits depends on the type of abatement technology that is used by firms: industries that use process-integrated technologies are more affected than those using end-of-pipe abatement technologies. The interaction...

We model environmental interaction among countries as a policy game where government in each country use quotas or taxes as a strategy variables. The environmental policy has a triple role to play : targeting domestic emission, providing strategic advantages for domestic firms and targeting...

Under imperfect competition, the effect of a cap-and-trade system on industry profits depends on the type of abatement technology that is used by firms: industries that use process-integrated technologies are more affected than those using end-of-pipe abatement technologies. The interaction...