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Rebating Revenues from Unilateral Emissions Pricing (anglais)

This paper evaluates alternative options for rebating revenues from a unilateral emissions price, focusing on energy-intensive and trade-exposed industries. A theoretical model is developed to demonstrate that conditional rebating policies---which would be distortionary in a first-best world---may be welfare-improving. For example, this could occur in a context where emissions leakage and terms-of-trade changes are associated with the introduction...
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