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- W2908405013 abstract "By constructing a dynamic general equilibrium model this paper studies the optimal pollution emission and abatement policies for a small economy. We show that in autarky government issues an optimal level of emission permits but its optimal abatement level is zero at the unique steady- state equilibrium. On the other hand, government employs an optimal two-dimensional policy with free trade if the country is an exporter of a pollution intensive good. That is, government issues pollution permits (thus controls the emission level) while it undertakes a positive level of abatement activity. In other words, an optimal combination of emission cap and pollution abatement is required for a small trading economy with comparative advantage in dirty goods." @default.
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- W2908405013 date "2011-01-01" @default.
- W2908405013 modified "2023-09-26" @default.
- W2908405013 title "A Holistic View of Trade, Pollution Permits and Abatement" @default.
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