This paper considers the effect of international air-pollution agreements ratified since 1970 on carbon dioxide emissions (CO2), the main cause of anthropogenic climate change. The analysis is based on a panel dataset of 150 countries over the period 1970-2008. While the literature generally...

In a two-period general equilibrium model, I study the effects of intertemporal emission permit trading in a cap-and-trade scheme when firms' investments in abatement have long-term effects. To meet their caps, firms optimally choose levels of trading and investment in each period by equalizing...

I study the effects of intertemporal emission permits trading in a cap-and-trade scheme when firms' abatement investments have long-term effects. In a two-period general equilibrium model, firms make trading and investment decisions in each period to meet their caps. I compare equilibrium...