Trading schemes for emission allowances have become a panacea for nations aspiring toreduce their aggregate emissions of greenhouse gases from industry in a cost-effectivemanner. The contention of this paper is that an emissions trading scheme (ETS) shouldnot be based on blanket coverage of...

This dissertation extends the Grossman-Helpman models of endogenous trade policy formation to incorporate local and global production and consumption externalities, and to allow governments to choose domestic production or consumption policies together with trade interventions. The models...