Emission trading models reveal dynamic complexities, informing policies for effective pollution control.
The article reviews different models used in emission trading systems. It explains how economic tools like taxes and trading can be more effective than strict regulations. The researchers looked at both static and dynamic models to see how factors like market power and costs can impact emission trading. They also studied how future markets and external factors can affect the cost of reducing emissions. The findings show that dynamic models can help understand and improve emission trading systems, like the one used in Europe.