Today it seems neither economically and ecologically efficient, if Switzerland reduces its carbon-dioxide (C02) emissions in a national solo-run. But calculations from a dynamic general equilibrium analysis show: If at high probability an international agreement on C02 reductions will be...

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Within the framework of a dynamic Computable General Equilibrium (CGE) model this paper analyses the impact of trade restrictions on regional rates of return on capital, marginal costs of abatement and optimal climate policy. It will be shown that regional differences both in marginal costs of...

There is a broad consensus that the costs of abatement of global climate change can be reduced efficiently through the assignment of quota rights and through international trade in these rights. There is, however, no consensus on whether the initial assignment of emissions permits can affect the...