Economists have speculated that the welfare gains from technological innovation that reduces the future costs of environmental protection could be a lot more important than the "Pigouvian" welfare gains over time from correcting a pollution externality. If so, then a primary concern in the...

Political pressure often exists for rebating environmental levies, particularly when incomplete regulatory coverage allegedly creates an“"unlevel playing field" with other, unregulated firms or industries. This paper assesses the conditions under which rebating environmental levies is justified...

Individual countries are in the process of legislating responses to the challenges posed by climate change. The prospect of rising carbon prices raises concerns in these nations about the effects on the competitiveness of their own energy-intensive industries and the potential for carbon...

Given the bleak prospects for a global agreement on mitigating climate change, pressure for unilateral abatement is increasing. A major challenge is emissions leakage. Border carbon adjustments and output-based allocation of emissions allowances can increase effectiveness of unilateral action...

Asymmetric regulation of a global pollutant between countries can alter the competitiveness of industries and lead to emissions leakage. For most types of pollution, abatement technologies are available for firms to produce with lower emissions. However, the suppliers of those technologies tend...

Several EU member states are exploring options for setting minimum domestic carbon prices within the EU Emission Trading System (ETS). First, a "TAX" policy would introduce a carbon tax equal to the difference between the prevailing ETS price and the targeted minimum price. Second, a national...

Several EU member states are exploring options for setting minimum domestic carbon prices within the EU Emission Trading System (ETS). First, a "TAX" policy would introduce a carbon tax equal to the difference between the prevailing ETS price and the targeted minimum price. Second, a national...

Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies where emissions pricing revenues are rebated to the regulated entities. This paper analyzes the incentives created by two novel forms of rebating that reward additional emission intensity reductions: one...

Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies for emission-intensive and trade-exposed firms. We analyze the incentives created by novel forms of emissions intensity-based rebating (IBR) and contrast them with more common approaches like...