We formally study the determinants, magnitude and distribution of efficiency gains generated in multilateral linkages between permit markets. We provide... Read more

We formally study the determinants, magnitude and distribution of efficiency gains generated in multilateral linkages between permit markets. We provide... Read more
This paper develops a novel theoretical tool with which a jurisdiction can evaluate the economic gains it can expect to obtain by linking its emissions trading system (ETS) to one, two or many ETSs at the same time, and proposes a reason why the global market remains a distant dream. Read more