Problem Definition: We study the strategic interactions between a supplier and a retailer under demand uncertainty when the supplier has two options for how to ship a product: (i) road transport, which is expensive, high-emission and flexible, and (ii) rail transport, which is cheap, green, and...

The use of tradable permit systems for the protection of the environment is attracting growing interest in many countries and on the international scene. While the United States’ practice has been extensively analysed, relatively little is known of experiments in other countries. This book...

Carbon control policies in OECD countries commonly differentiate emission prices in favor of energy-intensive industries. While leakage provides a efficiency argument for differential emission pricing, the latter may be a disguised beggar-thy-neighbor policy to exploit terms of trade. Using an...

While environmental taxes aim at making environmentally harmful behaviour more costly, the opposite is true for environmentally beneficial tax incentives. Tax incentives imply foregone public revenues to favour less polluting consumption and investment activities in order to achieve...