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Please use this identifier to cite or link to this item: http://hdl.handle.net/11266/5909

Title: Tradable Emissions Permits in the Presence of Trade Distortions
Other Titles: 貿易ディストーション存在下での排出量取引
Authors: Kawahara, Shinya
河原, 伸哉
Keywords: Trade Liberalization
Political Economy
Tradable Emissions Permits
Issue Date: 31-Mar-2017
Publisher: 立正大学経済学会
Abstract: This paper investigates how trade liberalization affects domestic emissions trading scheme in a political economy framework. Developing a model in which the amounts of emissions cap are endogenously determined, we show that a pro-industry government issues too large amount of emissions cap to benefit an industry group, while a pro-environment government issues too small amount of emissions cap to benefit an environmental group. Then, we examine how a country’s decision to liberalize trade can affect the equilibrium price of emissions cap chosen by the corruptible government. In particular, we show that trade liberalization will increase the too low price of permits chosen by the pro-industry government, while it will decrease the too high price of permits chosen by the pro-environment government.
URI: http://hdl.handle.net/11266/5909
Appears in Collections:66巻4号

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