Many countries are implementing or at least considering policies to counter increasingly certain negative impacts from climate change. A large amount of research has been devoted to the analysis of the costs of climate change and its mitigation, as well as to the design of policies, such as the...

Many countries are implementing or at least considering policies to counter increasingly certain negative impacts from climate change. An increasing amount of research has been devoted to the analysis of the costs of climate change and its mitigation, as well as to the design of policies, such...

We investigate how moral concerns about permit trading affect an endogenous pollution permit trading equilibrium, where governments choose non-cooperatively the amount of permits they allocate to domestic industries. Politicians may feel reluctant to allow permit trading and/or may prefer that...