This study develops a theoretical general equilibrium model to examine optimal externality tax policy in the presence of externalities linked to one another through markets rather than technical production relationships. Analytical results reveal that the second-best externality tax rate may be...

This study develops a theoretical general equilibrium model to examine optimal externality tax policy in the presence of externalities linked to one another through markets rather than technical production relationships. Analytical results reveal that the second-best externality tax rate may be...

As a consequence of the missing global agreement in the fight against Climate Change, several independent emissions trading schemes are coming into operation. From an economic perspective it would be desirable if prices of CO2 emission allowances were the same in each scheme, as this would...

Agriculture accounts for 13 percent of global GHG emissions. This rises to approximately 30 percent if land clearance for farming, agrochemical production and trade in agricultural and food products are attributed to the sector. Market based mechanisms (carbon tax, cap and trade, payment for...

Objective - The purpose of this study is to provide the argument that carbon disclosure must not only provide economic but also non-economic information. The more comprehensive disclosure of carbon emission is expected to change the behavior of industries in realizing a more environmentally...

This paper proposes a fixed price auction mechanism to overcome asymmetric information problem considering firms with heterogeneous emission abatement costs. When facing fixed price permit auction and emission trading market, firms will make trade-offs between buying permits at fixed price and...

We examine the association between carbon risk and future stock price crash risk and the moderating role of climate change disclosures in this association using a sample of firms across the world. We find that carbon risk is positively associated with future stock price crash risk, and...

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...

This paper studies the dynamic impacts of financial development, human capital, and economic growth on CO2 emission intensity in China for the period 1978-2015, with a structural breakpoint in 1992, by employing an autoregressive distributed lag (ARDL) approach. The estimations show that there...

This paper studies the effects of the carbon-based ecosystem on a country's output. We propose and estimate a dynamic game production model in which a country's ecosystem, as measured by its reservoir of carbon in land biomass and soils, is a productive input. This reservoir is diminished when...