Abatement policies

HIGHLIGHTS

• who: ABATEMENT POLICIES and colleagues from the DepartmentTilburg University have published the Article: Abatement policies, in the Journal: (JOURNAL)
• what: The authors show, first analytically in a simple two-period model and then numerically in the context of the EU ETS, that an ETS with a quantity-based endogenous cap produces a green paradox. More precisely, the authors show that there exists an abatement policy which reduces the demand for allowances but at the same time increases aggregate emissions. The model described above can easily be simulated to derive the EU ETS market equilibrium for . . .
  

   

  

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