?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=https%3A%2F%2Fpure.iiasa.ac.at%2Fid%2Feprint%2F4073%2F&rft.title=Emission+Trading+in+Europe+with+an+Exchange+Rate&rft.creator=Klaassen%2C+G.&rft.creator=Forsund%2C+F.R.&rft.creator=Amann%2C+M.&rft.description=This+paper+explores+the+analytical+and+empirical+properties+of+a+new+method++for+emission+trading+according+to+a+fixed+exchange+rate.+The+exchange+rate+is++based+on+the+ratios+of+the+marginal+costs+of+abatement+in+the+optimal+solution+in+order+to+account+for+the+impact+of+the+location+of+emission+sources+on+the+deposition.+It+is+shown+that%2C+generally%2C+this+system+will+not+achieve+the++optimal+solution+and+does+not+guarantee+that+environmental+deposition++constraints+are+not+violated%2C+although+total+abatement+costs+are+always+reduced.+A+routine+was+developed+to+mimic+trading+as+a+bilateral%2C+sequential++process%2C+subject+to+an+exchange+rate.+In+the+example+used%2C+results+for+SO2+emissions+in+Europe+will+show+that%2C+starting+from+a+uniform+reduction%2C++exchange-rate+trading+brings+higher+cost+savings+than+one-to-one+trading%2C+without+achieving+the+cost+minimum.+Sulfur+deposition+targets+are+not+violated+since+the+initial+emission+allocation+overfulfilled+targets+in+many+places.+The+results+are+sensitive+to%3A+pre-trade+emission+levels%2C+the+transaction++costs%2C+the+availability+of+information+on+potential+cost+savings%2C+and++assumptions+made+on+the+behavior+of+trading+partners.&rft.publisher=RR-95-002.+Reprinted+from+Environmental+and+Resource+Economics%2C+4%3A305-330+%5B1994%5D.&rft.date=1994&rft.type=Monograph&rft.type=PeerReviewed&rft.format=text&rft.language=en&rft.rights=cc_by&rft.identifier=https%3A%2F%2Fpure.iiasa.ac.at%2Fid%2Feprint%2F4073%2F1%2FRR-95-02.pdf&rft.identifier=++Klaassen%2C+G.+%3Chttps%3A%2F%2Fpure.iiasa.ac.at%2Fview%2Fiiasa%2F1376.html%3E%2C+Forsund%2C+F.R.%2C+%26+Amann%2C+M.+%3Chttps%3A%2F%2Fpure.iiasa.ac.at%2Fview%2Fiiasa%2F15.html%3E+ORCID%3A+https%3A%2F%2Forcid.org%2F0000-0002-1963-0972+%3Chttps%3A%2F%2Forcid.org%2F0000-0002-1963-0972%3E++(1994).++Emission+Trading+in+Europe+with+an+Exchange+Rate.+++IIASA+Research+Report+(Reprint).+IIASA%2C+Laxenburg%2C+Austria%3A+RR-95-002.+Reprinted+from+Environmental+and+Resource+Economics%2C+4%3A305-330+%5B1994%5D.+++++