This paper investigates the causal effect of the European Union's Emissions Trading Scheme (EU ETS) on pollution abatement investments, relying on firm-level panel data from the French manufacturing industry between 2001 and 2016. First, I find that regulated firms increased their investments...

This paper considers one altruistic developed country and several heterogeneous developing countries. We demonstrate that the lack of coordination between countries in tackling climate change finds an optimal solution if developing countries can expect to receive development aid transfers from...