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dc.contributor.advisorHultberg, Patrik T.
dc.contributor.authorRitchie, Keenan D.
dc.descriptioniv, 40 p.en_US
dc.description.abstractThis paper evaluates how climate change mitigation can be achieved through market-based instruments. Guided by environmental economic theory, a partial equilibrium model is formed that attempts to determine an optimal policy rate. This paper finds that the optimal policy rate can be achieved by equating the policy rate to the marginal environmental damage function. Extending the model to multiple countries indicates that an optimal policy will never be achieved if nations set policy independently. Only when they cooperate can an optimal policy rate be achieved. Reviewing some of the current market-based initiatives indicates such policy has observed varying degrees of success. The paper finds that the failure of market participants to internalize environmental externalities suggests there is a large scope for policy, and that governments together implementing market-based policies can play a significant role in efficiently achieving climate change mitigation.en_US
dc.relation.ispartofKalamazoo College Economics and Business Senior Individualized Projects Collection
dc.rightsU.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.
dc.titleThe Role of Market-Based Instruments in Alleviating Climate Changeen_US
KCollege.Access.ContactIf you are not a current Kalamazoo College student, faculty, or staff member, email to request access to this thesis.

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  • Economics and Business Senior Individualized Projects [1145]
    This collection includes Senior Individualized Projects (SIP's) completed in the Economics and Business Department. Abstracts are generally available to the public, but PDF files are available only to current Kalamazoo College students, faculty, and staff.

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