The Burden Sharing of Pollution Abatement Costs in Multi-Regional Open Economies
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Raouf Boucekkine
und Marc Germain
The burden sharing of pollution abatement costs raises the issue of how the costs are supported by entities (regions or industries) of a country that decides to reduce pollution, e.g., in the Kyoto Protocol context. This paper explores this issue in the framework of a dynamic endogenous growth 2 sectors - 2 regions - 2 inputs Heckscher-Ohlin model of a small open economy with an international tradable permits market. Given an "emission-based grand-fathering" sharing rule, capital accumulation is more negatively affected by the environmental policy in the energy intensive sector if energy and capital are complementary. But the picture could be different in terms of total sectoral revenue, depending on the evolution of prices. Finally, we show that the impact of environmental policy at the regional level depends crucially on the evolution of regional specialization patterns.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Artikel in diesem Heft
- Contributions Article
- Monetary Policy and Central Bank Balance Sheet Concerns
- The Transmission of Foreign Interest Rate Shocks to a Small-Open Economy: The Role of External Debt and Financial Integration
- Money and Barter under Private Information
- The Cost of Cyclical Mortality
- Interest Rate Conundrum
- Competitive Search Equilibrium with Private Information on Monetary Shocks
- Rational Inattention and Aggregate Fluctuations
- Optimal Monetary Policy in a Financially Fragile Economy
- Settlement Systems
- A Model of Sequential City Growth
- A Neoclassical Analysis of the Postwar Japanese Economy
- Empirics of Strategic Interdependence: The Case of the Racial Tipping Point
- Does Model Uncertainty Justify Conservatism? Robustness and the Delegation of Monetary Policy
- Can Financial Frictions Help Explain the Performance of the U.S. Fed?
- To Work or Not to Work: Did Tax Reforms Affect Labor Force Participation of Married Couples?
- Foreign Aid, Donor Fragmentation, and Economic Growth
- The Response of Household Expenditure to Anticipated Income Changes: Bonus Payments and the Seasonality of Consumption in Japan
- Of Nutters and Doves
- Topics Article
- Fiscal Shocks and Real Rigidities
- On Balance Sheets, Idiosyncratic Risk and Aggregate Volatility
- Endogenous Liquidity and Currency Unions
- Oil Matters: Real Input Prices and U.S. Unemployment Revisited
- Financial Development and Pay-As-You-Go Social Security
- Inflation Range Targets with Hard Edges
- Model Misspecification, Learning and the Exchange Rate Disconnect Puzzle
- Estimates of the Marginal Product of Capital, 1970-2000
- Examining Sectoral Co-Movement in Estimated Nominal Rigidities Models
- The Burden Sharing of Pollution Abatement Costs in Multi-Regional Open Economies
- Optimal Monetary Policy with a Convex Phillips Curve
- Cointegration and Asymmetric Adjustment: Some New Evidence Concerning the Behavior of the U.S. Current Account
- Risk-Adjusted Forecasts of Oil Prices
- Evaluating Communication Strategies for Public Agencies: Transparency, Opacity, and Secrecy
- The Source of UK Historical Economic Fluctuations: An Analysis Using Long-Run Restrictions
- Inflation Bias with Dynamic Phillips Curves and Impatient Policy Makers
- Regime Switches in GDP Growth and Volatility: Some International Evidence and Implications for Modeling Business Cycles
- What Drives Personal Consumption? The Role of Housing and Financial Wealth
- Dynamic Optimal Taxation with Human Capital
- Unemployment and Productivity, Slowdowns and Speed-Ups: Evidence Using Common Shifts
- Unions, Wage Setting and Monetary Policy Uncertainty
- Taxing Overtime or Subsidizing Employment
- Transitional Dynamics in the Solow-Swan Growth Model with AK Technology and Logistic Population Change
- Inflation Targeting: A Framework for Communication
- Advances Article
- Total Factor Productivity and Labor Reallocation: The Case of the Korean 1997 Crisis
- Inferential Expectations