Published December 1998 | Version v1
Journal article

Efficiency gains under exchange-rate emission trading

  • 1. Department of Economics, University of Oslo, Oslo (Norway)
  • 2. Department of Economics and Social Sciences, The Norwegian Agricultural University of Norway, Aas (Norway)

Description

In the case of emission of non-uniformly dispersed pollutants such as SO2 the negative effects depend on the location of the sources. A unit increase at one source must be compensated by either a larger or smaller reduction at another source to keep the negative effects at the same level. Emission trading between countries is possible under the Second Sulphur Protocol. Exchange rate trading and third party problems are studied within a simultaneous model facilitating impositions of various environmental constraints. Simulations based on the negotiated emission quotas are offered. Results indicate potential cost savings of 19%. 16 refs

Additional details

Publishing Information

Journal Title
Environmental and Resource Economics
Journal Volume
12
Journal Issue
4
Journal Page Range
p. 403-423
ISSN
0924-6460
CODEN
ERECEP