Combining empirical and theoretical contributions, 13 papers review different aspects of the definition and design of public environmental and energy policies. The editors (all of the U. de Vigo, Spain) first present discussions of fundamentals, including the relationship between growth and markets, and basic aspects of pollution markets. The next five papers explore the European Union's Emission Trading System and include a review of the system's economic performance using a computable general equilibrium model of the world economy, discussion of how the differing reduction requirements may impact the climate policy and compliance cost of member states, assessment of the effects of a prospective sudden and intense CO2 reduction by the Spanish economy, and presentation of a method for the verification of firm data within the EU system. Remaining papers are devoted to specific advanced issues, including induced technological change and slow energy capital stock turnover in an optimal CO2 abatement model, indeterminancy and optimal environmental public policies in an endogenous growth model, energy-saving technological process in a vintage capital model, and oil shocks and the business cycle in Europe. Annotation ⓒ2006 Book News, Inc., Portland, OR (booknews.com)

List of Contributors Acknowledgements Preface 1. Introduction and overview Carlos de Miguel, Xavier Labandeira and Baltasar Manzano PART I SOME FUNDAMENTALS 2. Growth and environment: on U-curves without U-turns Sjak Smulders 3. Pollution markets: some theory and evidence Juan P. Montero PART II THE EU EMISSION TRADING SYSTEM 4. European greenhouse gas emissions trading: A system in transition John Reilly and Sergey Paltsev 5. Harmonizing emission allocation.What are the equity consequences for the sectors in and outside the EU-trading scheme Tim Hoffmann, Andreas L?chel and Ulf Moslener 6. The effects of a sudden CO2 reduction in Spain Xavier Labandeira and Miguel Rodriguez 7. An assessment of the consequences of the European emissions trading scheme for the promotion of renewable electricity in Spain Pedro Linares, Francisco J Santos and Mariano Ventosa 8. Efficient verification of firm data under the EU emissions trading system Frauke Eckermann PART III ADVANCED ISSUES IN CLIMATE CHANGE AND ENERGY POLICIES 9. Induced technological change and slow energy capital stock turnover in an optimal CO2 abatement model Malte Schwoon and Richard S.J. Tol 10. Indeterminacy and optimal environmental public policies in an endogenous growth model Rafaela P?ez and Jes? Ruiz 11. Energy-saving technological progress in a vintage capital model Agustin P?ez-Barahona and Benteng Zou 12. Oil shocks and the business cycle in Europe Carlos de Miguel, Baltasar Manzano and Jos?M. Martin-Moreno 13. Energy transitions and policy design in a GPT setting with cyclical growth through basic and applied R&D Adriaan van Zon and Tobias Kronenberg Index