Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/105774
Authors: 
Razmi, Arslan
Year of Publication: 
2013
Series/Report no.: 
Working Paper, University of Massachusetts, Department of Economics 2013-02
Abstract: 
Environmental economics has mostly focused on micro issues pertaining to welfare and efficiency analysis. I develop a general framework to address short-run issues both for a closed economy and for an open one where emission permits are globally traded. Fiscal policy and emission permit issuance can both be used as short-run stabilization tools in a closed economy although the former is ineffective in a small open economy. In a large open economy, issuing emission permits in excess of international agreements remains an effective instrument, although it acts as a beggar-thy-neighbor policy, highlighting the crucial role of global monitoring on macroeconomic grounds. JEL Categories:
Document Type: 
Working Paper

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