IDEAS home Printed from https://ideas.repec.org/p/deg/conpap/c015_047.html
   My bibliography  Save this paper

GHG Emissions, Lobbying, Free-Riding, and Technological Change

Author

Listed:
  • Tapio Palokangas

Abstract

I examine GHG emission policy in a world with a fixed number of regions. In each region, labor and emissions are complementary in production, total world-wide emissions decrease welfare, and total factor productivity can be improved by R&D. A subset of regions can establish an "abatement coalition", authorizing a central planner to grant them non-traded or traded GHG permits. The planner is self-interested, subject to lobbying, and has no budget of its own. The results are the following. The establishment of the "abatement coalition" enhances welfare, promotes economic growth and diminishes emissions both inside and outside the coalition. With technological change due to R&D, GHG permit trade decreases welfare. Furthermore, it increases emissions and slows down economic growth, if emissions are inelastic with respect to the price for permits. Without technological change, GHG permit trade does not make any difference.

Suggested Citation

  • Tapio Palokangas, 2010. "GHG Emissions, Lobbying, Free-Riding, and Technological Change," DEGIT Conference Papers c015_047, DEGIT, Dynamics, Economic Growth, and International Trade.
  • Handle: RePEc:deg:conpap:c015_047
    as

    Download full text from publisher

    File URL: http://degit.sam.sdu.dk/papers/degit_15/c015_047.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Markussen, Peter & Svendsen, Gert Tinggaard, 2005. "Industry lobbying and the political economy of GHG trade in the European Union," Energy Policy, Elsevier, vol. 33(2), pages 245-255, January.
    2. 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.
    3. Corrado Maria & Edwin Werf, 2008. "Carbon leakage revisited: unilateral climate policy with directed technical change," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 39(2), pages 55-74, February.
    4. Bohringer, Christoph & Lange, Andreas, 2005. "On the design of optimal grandfathering schemes for emission allowances," European Economic Review, Elsevier, vol. 49(8), pages 2041-2055, November.
    5. Reyer Gerlagh & Onno Kuik, 2007. "Carbon Leakage with International Technology Spillovers," Working Papers 2007.33, Fondazione Eni Enrico Mattei.
    6. Golombek Rolf & Hoel Michael, 2004. "Unilateral Emission Reductions and Cross-Country Technology Spillovers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 3(2), pages 1-27, September.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    GHG emissions; Technological change; Lobbying;

    JEL classification:

    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • F15 - International Economics - - Trade - - - Economic Integration

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:deg:conpap:c015_047. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jan Pedersen). General contact details of provider: http://edirc.repec.org/data/iehhsdk.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.