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The Idea of Global CO2 Trade

Research output: Working paperResearch

  • Department of Economics
The US has been criticized for wanting to earn a fortune on a global CO2 market. However, compared to the situation without trade and provided that such a market is designed so that it does not pay to cheat, a global CO2 market may provide the world with an epoch-making means of cost-effective control which can solve future global environmental problems. The gains from CO2 trade may give vital financial subsidies from the EU to Eastern Europe, for example, and it will probably not pay to cheat if quotas are renewed periodically by the UN. Cheating countries are then to be excluded from further profitable trade. Also, a periodical renewal of permits makes it possible to tighten target levels in the future.
Original languageEnglish
Publication statusPublished - 1998

    Research areas

  • Greenhouse effect, Global CO2 trade, Subsidies, United States, Eastern Europe, Kyoto, Russia, United Nations, Energy efficiency, Redistribution

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