Industry-Level Emission Trading in the EU
34
ΠA = n -
H dir Pdir
1
Λ λ j'σλ , λ 4 M1 -σλ I σA i .CO2 CO2
tθ Ar pr + (1 - θAr) pr ) + tr adir
5. Aggregate imports across import regions:
Πm M -M 1-
ir = pir - I Σ θisr pis
∖ S
1
1-G M
= 0
6. Investment:
∏ r=p`, - ∑ θ ∣rpA,r=о
i
7. Public good production:
∏G = pGr -∑θ p^ = 0
i
8. Household consumption demand:
..(
∏ C=pC - [ θ Ecr l∙ ec+(1-θ Cr)
∏ pAC )
i g CG
1-σ EC
9. Household energy demand:
∏Cr = pC;
X^^∕z-,C Λ 1~σECλ 11-^cc
∑ (θ iCr pcir )l
.i ^EG J
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