This paper examines the investment incentives of market-based regulation, with focus on the technology characteristics the different regulatory schemes tend to incentivize. The firms' technology choice is socially optimal ...

This paper investigates environmental policy in the presence of endogenous preferences. The optimal time trajectory is achieved if and only if the consumer is perfectly time-consistent. The suboptimal trajectories do not ...

In the longer run, effects on R&D and the implementation of advanced abatement technology may be at least as important as short-run cost effectiveness when we evaluate public environmental policy. In this paper, we show ...

Countries with ambitious climate targets are concerned about carbon leakage to countries with more lenient or no carbon pricing. A common policy measure against leakage is output-based allocation of emissions allowances, ...

This paper studies the oil market effects of phasing out oil consumption subsidies in the transport sector. Welfare effects in different countries are also examined. We investigate potential feedback mechanisms of oil ...

Norge har ambisiøse mål i klimapolitikken for ikke-kvotepliktig sektor. Kuttene kan gjennomføres billigst mulig ved å stille alle utslippskildene overfor samme utslippspris. Imidlertid oppstår en stor del av de samfunnsøkonomiske ...

This paper shows that tradable emissions permits and an emissions tax affect the firms' technology choice differently under uncertainty. A tax encourages the most flexible technology if and only if stochastic costs and ...

Announcement of future environmental regulation is likely to reduce current emissions in the combined presence of resource scarcity and adjustment costs. This contrasts with the results in the literature on the green ...

Policy makers in the EU and elsewhere are concerned that unilateral carbon pricing induces carbon leakage through relocation of emission-intensive and trade-exposed industries to other regions. A common measure to mitigate ...

This study derives the optimal combination of consumer taxes and producer taxes when both spatial and intertemporal leakages from the free-riders are taken into account. The starting point of this paper is a climate ...