This paper analyses trading and banking of carbon emission rights. Within the framework of a modestly simple, integrated assessment model that brakes the world economy in just two re-gions, North and South, it can be shown: (1) There exists separability between environmental targets and the...

Within the framework of a dynamic Computable General Equilibrium model this pa-per analyses the impact of trade restrictions on regional rates of return on capital, mar-ginal costs of abatement and optimal climate policy. It will be shown that regional dif-ferences both in marginal costs of...

There are two polar views on the issue of discounting. One is to focus on intergenerational equity which means discounting utilities at low rates. Alternatively, the focus is on efficiency where the choice of the discount rate should imply rates of return that are similar to those that prevail...

This paper analyses banking and borrowing of carbon emission rights within the framework of a simple, integrated assessment model. Breaking the world economy in just two regions it will be shown: (1) Increasing when-flexibility in greenhouse gas abatement through banking and borrowing of carbon...

This paper analyses costs and benefits of three different post-Kyoto policy options: On the one hand there is PARETO which is the nickname for the pareto-efficient internationalization of the external effects of global climate change through trading carbon emission rights on open global markets....