Author/Authors
Bréchet، نويسنده , , Thierry and Jouvet، نويسنده , , Pierre-André and Rotillon، نويسنده , , Gilles، نويسنده ,
DocumentNumber
3542648
Title Of Article
Tradable pollution permits in dynamic general equilibrium: Can optimality and acceptability be reconciled?
شماره ركورد
6138
Latin Abstract
In this paper we study the dynamic general equilibrium path of an economy and the associated optimal growth path in a two-sector overlapping generation model with a stock pollutant. A sector (power generation) is polluting, and the other (final good) is not. Pollution is regulated by tradable emission permits. The issue is to see whether the optimal growth path can be replicated in equilibrium with pollution permits, given that some permits must be issued free of charge for the sake of political acceptability. We first analyze the many adverse impacts of free allowances, and then we propose a policy rule that allows optimality and acceptability to be reconciled.
From Page
89
NaturalLanguageKeyword
Pollution , Tradable emission permits , Acceptability , optimal growth , General equilibrium
JournalTitle
Studia Iranica
To Page
97
To Page
97
Link To Document