Most countries in the world have been strongly affected since March 2020 by the COVID-19 pandemic. In order to face the health crisis and reduce the spread of the virus, they have chosen a lockdown strategy, which is progressively ending in Spring 2020. The lockdown exit is likely to lead to...

There is extreme heterogeneity of firms regulated under the European Emissions Trading Scheme (EU ETS) in terms of emissions evels and employed technology. We present a model that shows that behavior of firms under quantity regulation can differ strongly, dependent on the characteristics of the...