【主讲】吴乐珍 (讲师，复旦大学管理学院)
【主题】Financial integration: a remedy for climate change?
【时间】2018年10月26日 (周五) 15：30-17：00
【地点】上海财经大学经济学院楼701室
【语言】英文
【摘要】This paper studies how increasing cross-border ownership can help bring the unilateral climate change policy -- the induced carbon price specifically -- closer to the globally efficient level. The model predicts that under perfect competition, the unilateral carbon price increases in the foreign ownership position -- the percentage of local productive factors owned by foreign investors. Under a cap-and-trade system with free allocation, the unilateral carbon price reaches the efficient level when there is full international portfolio diversification. The second part of the paper identifies the determinants of the endogenous choice between a cap-and-trade system and a carbon tax: political pressure, foreign ownership level, and trade exposure. The model finds that the government prefers the cap-and-trade system when the political pressure from the local industry is large enough compared to the foreign ownership position, and the government prefers a carbon tax otherwise. When the country is open to trade, a cap-and-trade system is preferred since the carbon tax will put the domestic firms at an even worse competitive position in the international market. A trading scheme with partial free allocation is in general suboptimal.
