F fXTp V Wi 2 I F Pi p

By the market clearing condition X i=1N Si;1 +B1+n1=0, Substituting (25.12) in to (25.11), we obtain

In the case where nation i buys Si;1 emission credits at time 1, the cost of nation is

The expectation and the variance are

The substantial cost minimizing problem of a nation i is

The substantial cost minimizing problem of a nation i is mm

Si.i

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