We demonstrate that global permit markets are Pareto efficient despite the externality type, production or consumption, when income redistribution occurs after regional environmental policymaking. Ex-ante income redistribution is neutral if emissions affect production only, but non-neutral if...

We set out a model of production and appropriation involving many players, who differ with respect to both resource endowments and productivities. We write down the model in a novel way that permits our analysis to avoid the proliferation of dimensions associated with the best response function...