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Is Emission Trading Beneficial?

Author Info

  • JOTA ISHIKAWA
  • KAZUHARU KIYONO
  • MORIHIRO YOMOGIDA

Abstract

We develop a two-country (North and South), two-good, general equilibrium model of international trade in goods and explore the effects of domestic and international emission trading under free trade in goods. Whereas domestic emission trading in North may result in carbon leakage by expanding South's production of the emission-intensive good, international emission trading may induce North to expand the production of the emission-intensive good by importing emission permits. Emission trading may deteriorate global environment. North's (South's) emission trading may not benefit South (North). International emission trading improves global efficiency but may not benefit both countries.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1111/j.1468-5876.2012.00570.x
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Article provided by Japanese Economic Association in its journal Japanese Economic Review.

Volume (Year): 63 (2012)
Issue (Month): 2 (06)
Pages: 185-203

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Handle: RePEc:bla:jecrev:v:63:y:2012:i:2:p:185-203
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Find related papers by JEL classification:
  • F18 - International Economics - - Trade - - - Trade and Environment

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  1. Markusen, James R. & Morey, Edward R. & Olewiler, Nancy, 1995. "Competition in regional environmental policies when plant locations are endogenous," Journal of Public Economics, Elsevier, vol. 56(1), pages 55-77, January.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Should there be international trade in pollution rights?
    by Economic Logician in Economic Logic on 2011-05-02 14:50:00
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Cited by:

  1. Kazuharu Kiyono & Jota Ishikawa, 2011. "Environmental Management Policy under International Carbon Leakage," Global COE Hi-Stat Discussion Paper Series gd11-204, Institute of Economic Research, Hitotsubashi University.
  2. Xiao Chen & Alan Woodland, 2013. "International trade and climate change," International Tax and Public Finance, Springer, vol. 20(3), pages 381-413, June.

This item is featured on the following reading lists or Wikipedia pages:

  1. Economic Logic blog

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