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| Pauli Lappi |
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| ''Too many traders? On the welfare ranking of prices and quantities'' |
| ( 2017, Vol. 37 No.3 ) |
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| This study conducts a welfare comparison of emission tax and emissions trading in a multi-period model, in which the regulation instruments are chosen through a political process and unregulated participants can trade in the permit market. It is found that under reasonable conditions a tax yields a higher welfare level than emissions trading. |
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| Keywords: Emissions trading, Emission tax, Lobbying, Welfare |
JEL: Q5 - Environmental Economics: General
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| Manuscript Received : Mar 20 2017 | | Manuscript Accepted : Aug 31 2017 |
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