LOGIN TO YOUR ACCOUNT

Username
Password
Remember Me
Or use your Academic/Social account:

CREATE AN ACCOUNT

Or use your Academic/Social account:

Congratulations!

You have just completed your registration at OpenAire.

Before you can login to the site, you will need to activate your account. An e-mail will be sent to you with the proper instructions.

Important!

Please note that this site is currently undergoing Beta testing.
Any new content you create is not guaranteed to be present to the final version of the site upon release.

Thank you for your patience,
OpenAire Dev Team.

Close This Message

CREATE AN ACCOUNT

Name:
Username:
Password:
Verify Password:
E-mail:
Verify E-mail:
*All Fields Are Required.
Please Verify You Are Human:
fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Wooders, Myrna Holtz; Zissimos, Ben (2001)
Publisher: University of Warwick, Department of Economics
Languages: English
Types: Book
Subjects: HC
This paper illustrates that an international permit trading system may hurt relatively poor countries by making associated economic activities unaffordable. A model is constructed in which the free market solution is Pareto inefficient as a result of pollution. The introduction of tradable permits allows pollution to be internalised, and brings about an increase in the total social surplus. But when incomes vary, this may not lead to a Pareto improvement; those in poor countries stop the polluting activity because they cannot afford to do otherwise. Only those in relatively rich countries are made better off. This may explain why poor countries are reluctant to ratify the Kyoto Protocol, itself advocating a permit trading scheme. The politico-economic implications of permit trading are also examined. We show that the democratic requirements for ratification impose a lower bound on pollution reduction that can be achieved through a system of pollution permits with trade.
  • The results below are discovered through our pilot algorithms. Let us know how we are doing!

    • [4] Dixit, A. and V. Norman (1980) Theory of International Trade, Cambridge University Press, Cambridge, UK.
    • [5] Farrow, S. (1995) “The dual political economy of taxes and tradable permits.” Economics Letters 49: 217-220.
    • [6] Hadley Centre (2000) “An update of recent research from the Hadley Centre.” Available on-line at http://www.meto¢ce.gov.uk/research/hadleycentre/.
    • [7] Hahn, R. W. “Market power and transferable property rights.” Quarterly Journal of Economics, 99(4) 753-765.
    • [8] Hammond, P. (1999) “On f -core equivalence in a Continuum Economy with Widespread Externalities,” Journal of Mathematical Economics 32, 177-184.
    • [9] Hammond, P., M. Kaneko, and M.H. Wooders (1989) 'Continuum economies with …nite coalitions: Core, equilibria, and widespread externalities', Journal of Economic Theory 49, 113-134.
    • [10] Houlder, V. (2000) “US rebu¤ heats up climate talks.” Financial Times 21/11/00, accessible on-line at http://www.ft.com/.
    • [11] Howe, C. (1994) “Taxes versus tradable discharge permits.” Environmental and Resource Economics 4: 151-169.
    • [12] Kaneko, M. and Wooders, M.H. (1989) 'The core of a continuum economy with widespread externalities and …nite coalitions: >From …nite to continuum economics', Journal of Economic Theory 49, 135-168.
    • [13] Kaneko, M. and M. Wooders (1994) “Widespread externalities and perfectly competitive markets: examples.” in R. Gilles and P. Ruys (eds.) Imperfections and Behaviour in Economic Organizations, Kluwer Academic Press, Boston.
    • [14] Moomaw, W., K. Ramakrishna, K. Gallagher and T. Fried (1999) “The Kyoto Protocol: A blueprint for sustainable development.” Journal of Environment and Development, 8(1) March pp 82-90.
    • [15] OECD (2000) Emissions baselines: Estimating the unknown. OECD, Paris, 292 pages.
    • [16] Wooders, M. and B. Zissimos (2001) “Equity matters in pollution permit trading.” typescript.
    • [17] WRI (World Resources Institute) (1994) World Resources 1998-99: Environmental Change and Human Health. A joint publication by The World Resources Institute, United Nations Environmental Programme, United Nations Development Programme, and International Bank of Reconstruction and Development. New York: Oxford University Press.
  • No related research data.
  • No similar publications.

Share - Bookmark

Cite this article