Non-cooperative game theoretical models of self-enforcing international environmental agreements (IEAs) that employ the cartel stability concept of d’Aspremont et al. (1983) frequently assume that countries are identical, and they can sign a single agreement only. We modify the assumption by considering two self-enforcing IEAs and also two types of asymmetric countries. Extending a model of Bar...

In order to mitigate negative effects from traffic it has been decided that infrastructure charges in the European Union (EU) should be based on short run marginal costs. The Swedish Parliament has legislated that operators in the Swedish railway infrastructure must pay charges based on short run marginal social costs in order to mitigate externalities in railway infrastructure. Internalization...

For political and practical reasons, environmental regulations sometimes treat point-source polluters, such as power plants, differently from mobile-source polluters, such as vehicles. This paper measures the extent of this regulatory asymmetry in the case of nitrogen oxides (NOx), the most recalcitrant criteria air pollutant in the United States. We find significant differences in marginal aba...

The study is focused on the comparison of how costly different decarbonization options in Russia are, terms their total expenses per a unit CO2 avoided. We have constructed two marginal abatement cost curves reflecting policies Russian energy sector – basic and intensive scenarios. Doing that, we tried to adequately represent economic, regulation climatic features (for instance, relatively low ...

Many economists and policy makers have long favored the use of a price instrument to control greenhouse gases because they are a stock pollutant and as such the marginal benefit of abatement is relatively flat. While the early literature on the problem is consistent with this view, the later literature is less categorical. It showed that the choice between a price or quantity control depends, i...

The paper analyzes the economics of CO2 emissions in power systems by introducing concepts of marginal carbon intensity (MCI) of electricity demand and shadow carbon intensities (SCI) of binding transmission constraints. It demonstrates that values of MCIs are time and location dependent and exhibit properties similar to those of locational marginal prices of power. These concepts and their pro...