Question
Economics of the Environment (II) [10 marks] a)Use the cap-and-trade model to explain in technical detail the two outcomes of abatement using CO 2 permits:
Economics of the Environment (II) [10 marks]
a)Use the cap-and-trade model to explain in technical detail the two outcomes of abatement using CO2 permits: the 50:50 split and the cap-and-trade equilibrium. In your answer, show the gains from trade between the two firms.
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Using Econometrics A Practical Guide
Authors: A. H. Studenmund
7th edition
013418274X, 978-0134182742
