Carbon Dating: When Is It Beneficial to Link ETSs?
研究了连接两个排放交易体系相对于各自独立运行的经济优势，发现不确定性、市场规模和沉没成本决定了连接是否有利，且即使一方价格波动增加，连接仍可能更优。
We propose a theory of the economic advantage (EA) of regulating carbon emissions by linking two emissions trading systems versus operating them under autarky. Linking implies that permits issued in one system can be traded internationally for use in the other. We show how the nature of uncertainty, market sizes, and sunk costs of linking determine EA. Even when sunk costs are small so , autarky can be preferable to one partner, depending on jurisdiction characteristics. Moreover, one partner’s permit price volatility under linking may increase without making linking the less preferred option. An empirical application calibrates jurisdiction characteristics to demonstrate the economic significance of our results, which can make linking partner match crucial for the effectiveness and success of the Paris Agreement.