International Emission Trading Systems: Trade Level and Political Acceptability
The Kyoto Protocol of December 1997 allows emission trade between countries that have committed themselves to an emission ceiling. This paper considers two schemes of emission trading: trade between goverments and trade between emision sources. The two schemes are analyzed and the strengths and weaknesses of the two schemes are compared in a public choice setting which focuses on group size, selective incentives, entrepreneurship and lobbyism from industry.
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