This paper analyzes carbon leakage due to reduced emissions from deforestation (RED). We find that leakage with RED is good because the policy induces afforestation that contributes to a further carbon sequestration. By ignoring the domestic component of carbon leakage, the literature can either...

New initiatives are needed in order to move the GATT negotiations forward. A Production Entitlements Guarantees (PEG) program would limit the quantity of production of individual farmers eligible to receive support payments. The payments would be tied to production. But the quantity of...