Developing countries in Asia face a variety of environmental challenges. Although environmental economics grew mostly out of the experience of developed countries, decades of environmental economics research offer important and useful lessons for environmental regulation in developing countries...

The policy instruments for emissions reductions will be an integral part of a Post Kyoto Climate Regime. In this paper we compare a harmonized international carbon tax to a cap and trade system with different allocation rules for the emission caps. The caps are based either on the requirement...