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We study optimal climate policy in a global economy where regions differ in wealth and climate vulnerability. Carbon emissions from production lead to output losses, and there is a technology for emissions absorption. We provide an aggregation result: the model with heterogeneity can be cast...
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Germany and the Eastern European Union region (EEU) are significantly lower than in the rest of the EU regions. (ii) The … carbon price in the emission permit market covering NEIT is significantly higher than the carbon price in the emission permit … market covering EITE. (iii) Germany and EEU appear as notable suppliers of emission permits in both markets. (iv) There is a …
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We study the variation of global and unilateral carbon price recommendations and their determinants. To this end, we … (dis-)agreement and reveal that a majority of experts can agree on some short- and medium-term global carbon price levels …, and on unilateral carbon price levels in most countries. We find little evidence for free-riding. Indeed, experts …
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