External balance, dynamic efficiency, and the welfare effects of unilateral and multilateral permit policies in interdependent economies
AbstractThis paper investigates domestic and foreign welfare effects of unilateral and multilateral permit policies in a two-country overlapping generations model with producer carbon emissions. We show that the welfare effects of a more stringent cap on emissions depend on the external balance of the policy implementing country, the dynamic (in)efficiency of the world economy, and the preference for environmental quality. Under dynamic efficiency, the global welfare loss of policy implementation in a net foreign creditor country is lower than of a policy in the net foreign debtor country. Moreover, although the country which has unilaterally implemented a permit policy would gain from a multilateral policy, the associated welfare loss for the other country is larger than that of a unilateral policy abroad.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Economic Modelling.
Volume (Year): 27 (2010)
Issue (Month): 5 (September)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30411
Emission permits Trade Overlapping generations Welfare;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alfred Endres, 2008. "Ein Unmöglichkeitstheorem für die Klimapolitik?," Perspektiven der Wirtschaftspolitik, Verein für Socialpolitik, vol. 9(3), pages 350-382, 08.
- Copeland, Brian R. & Taylor, M. Scott, 2005.
"Free trade and global warming: a trade theory view of the Kyoto protocol,"
Journal of Environmental Economics and Management,
Elsevier, vol. 49(2), pages 205-234, March.
- Copeland,B.R. & Taylor,M.S., 2000. "Free trade and global warming : a trade theory view of the Kyoto protocol," Working papers 4, Wisconsin Madison - Social Systems.
- Brian R. Copeland & M. Scott Taylor, 2000. "Free Trade and Global Warming: A Trade Theory View of the Kyoto Protocol," NBER Working Papers 7657, National Bureau of Economic Research, Inc.
- Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521311120, December.
- Lipton, David & Sachs, Jeffrey, 1983. "Accumulation and growth in a two-country model : A simulation approach," Journal of International Economics, Elsevier, vol. 15(1-2), pages 135-159, August.
- Jouvet, Pierre-André & Michel, Philippe & Rotillon, Gilles, 2005.
"Equilibrium with a market of permits,"
Research in Economics,
Elsevier, vol. 59(2), pages 148-163, June.
- Jacob A. Frenkel & Assaf Razin, 1986.
"The International Transmission and Effects of Fiscal Policies,"
NBER Working Papers
1799, National Bureau of Economic Research, Inc.
- Frenkel, Jacob A & Razin, Assaf, 1986. "The International Transmission and Effects of Fiscal Policies," American Economic Review, American Economic Association, vol. 76(2), pages 330-35, May.
- Ono, Tetsuo, 2001.
"The Effects of Emission Permits on Growth and the Environment,"
33, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
- Tetsuo Ono, 2002. "The Effects of Emission Permits on Growth and the Environment," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 21(1), pages 75-87, January.
- Bréchet, Thierry & Lambrecht, Stéphane & Prieur, Fabien, 2009.
"Intertemporal transfers of emission quotas in climate policies,"
Elsevier, vol. 26(1), pages 126-134, January.
- BRECHET, Thierry & LAMBRECHT, Stéphane & PRIEUR, Fabien, . "Intertemporal transfers of emission quotas in climate policies," CORE Discussion Papers RP -2126, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Torsten Persson, 1983.
"Deficits and Intergenerational Welfare in Open Economies,"
NBER Working Papers
1083, National Bureau of Economic Research, Inc.
- Persson, Torsten, 1985. "Deficits and intergenerational welfare in open economies," Journal of International Economics, Elsevier, vol. 19(1-2), pages 67-84, August.
- Jouvet, Pierre-Andre & Michel, Philippe & Rotillon, Gilles, 2005.
"Optimal growth with pollution: how to use pollution permits?,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 29(9), pages 1597-1609, September.
- Pierre-André Jouvet & Philippe Michel & Gilles Rotillon, 2004. "Optimal growth with pollution : how to use pollution permits ?," Cahiers de la Maison des Sciences Economiques v04012, Université Panthéon-Sorbonne (Paris 1).
- Maurice Obstfeld, 1989.
"Fiscal Deficits and Relative Prices in a Growing World Economy,"
NBER Working Papers
2725, National Bureau of Economic Research, Inc.
- Obstfeld, Maurice, 1989. "Fiscal deficits and relative prices in a growing world economy," Journal of Monetary Economics, Elsevier, vol. 23(3), pages 461-484, May.
- Birgit Bednar-Friedl & Karl Farmer & Andreas Rainer, 2010.
"Effects of Unilateral Climate Policy on Terms of Trade, Capital Accumulation, and Welfare in a World Economy,"
Environmental & Resource Economics,
European Association of Environmental and Resource Economists, vol. 47(4), pages 495-520, December.
- Karl Farmer & Birgit Bednar-Friedl & Andreas Rainer, 2008. "Effects of Unilateral Climate Policy on Terms of Trade, Capital Accumulation, and Welfare in a World Economy," CESifo Working Paper Series 2375, CESifo Group Munich.
- Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, December.
- Bohringer, Christoph & Vogt, Carsten, 2004. "The dismantling of a breakthrough: the Kyoto Protocol as symbolic policy," European Journal of Political Economy, Elsevier, vol. 20(3), pages 597-617, September.
- Zee, Howell H, 1987. "Government Debt, Capital Accumulation, and the Terms of Trade in a Model of Interdependent Economies," Economic Inquiry, Western Economic Association International, vol. 25(4), pages 599-618, October.
- Birgit Bednar-Friedl, 2012. "Climate policy targets in emerging and industrialized economies: the influence of technological differences, environmental preferences and propensity to save," Empirica, Springer, vol. 39(2), pages 191-215, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.