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A Note on The Kyoto Protocol, Tradeable Quotas and Firm Survival

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  • Cathrine Hagem

Abstract

There is a concern in many countries thatintroducing a tradeable greenhouse-gas quotasystem may lead to closures ofemission-intensive industrial companies.Jebjerg and Lando argue in an article publishedpreviously by this Journal that shutdowns canbe prevented by a generous distribution of freequotas. However, this is only true if thequotas are distributed contingent on continuedproduction. Some of the practical problems withconditional allocation of free tradeable quotascan be avoided by letting all free quotas benon-tradeable. Copyright Kluwer Academic Publishers 2002

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  • Cathrine Hagem, 2002. "A Note on The Kyoto Protocol, Tradeable Quotas and Firm Survival," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 22(3), pages 467-468, July.
    • Handle: RePEc:kap:enreec:v:22:y:2002:i:3:p:467-468
    DOI: 10.1023/A:1016053630292
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    References listed on IDEAS

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    1. H.E. Frech III, 1973. "Pricing of Pollution: The Coase Theorem in the Long Run," Bell Journal of Economics, The RAND Corporation, vol. 4(1), pages 316-319, Spring.
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    Cited by:

    1. Hagem, Cathrine, 2009. "The clean development mechanism versus international permit trading: The effect on technological change," Resource and Energy Economics, Elsevier, vol. 31(1), pages 1-12, January.

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