A Search Model for Joint Implementation

Abstract:     
The aim of this paper is to present a search model in the field of environmental economics, where so-called clean and dirty producers enter the trading market, both looking for a partner with whom to exchange the goods they are endowed with. The model derived in this paper is rather simple. Nevertheless, it is able to produce a series of interesting results and useful insights, and is conveniently used here as a framework to explain the functioning of Joint Implementation programmes for polluting emissions’ reduction.

Number of Pages in PDF File: 21

Keywords: Environmental economics, Search theory, Market failures

JEL Classification: C61, O13, Q26

working papers series