This paper proposes a system of tradable deficit permits for implementing budgetary austerity at the local level. We evaluate the efficiency of the fiscal retrenchment allocation in a dynamic setting with a commitment problem. The way rights are allcated and traded on the market turns out to be...

This paper examines a situation where a decision-maker determines the appropriate compensation that should be implemented for a given ecological damage. The compensation can be either or both in monetary and environmental units to meet three goals: i) minimization of the cost associated with the...

Developed and developing countries compete to attract firms using various instruments including corporate taxes and environmental regulations. They also commit to international environmental agreements with “common but differentiated responsibilities” (CBDR). We investigate how the...