Scandinavian Working Papers in Economics

Discussion Papers,
Statistics Norway, Research Department

No 693: International emissions trading in a noncooperative climate policy game

Bjart Holtsmark and Dag Einar Sommervoll ()
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Dag Einar Sommervoll: Statistics Norway

Abstract: Using a non cooperative climate policy game applied in the literature, we find that an agreement with international emissions trading leads to increased emissions and reduced efficiency.

Keywords: Climate change; international environmental agreements; emissions trading; non-cooperative game theory.

JEL-codes: C7; Q2; Q4 June 2012

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