The Race for Polluting Permits

  title={The Race for Polluting Permits},
  author={Thierry Br{\'e}chet and Susana Peralta},
International markets for tradable emission permits (TEP) co-exist with national energy taxation. A firm trading emission permits in the international market also pays energy taxes in its host country, thus creating an interaction between the international TEP-market and national energy taxes. In this paper we model that interaction in a framework of a perfectly competitive international TEP-market, where heterogeneous firms trade their TEP endowments. National governments set energy taxes non… CONTINUE READING