| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Bankruptcy Risk and the Performance of Tradable Permit Markets
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| Autores: |
Stranlund, John K.
Zhang, Wei
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| Data: |
2008-02-22
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| Ano: |
2007
|
| Palavras-chave: |
Bankruptcy
Tradable permits
Permit markets
Environmental Economics and Policy
L51
Q28
Q58
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| Resumo: |
We study the impact of bankruptcy risk on markets for tradable environmental and natural resource permits. We find that firms that risk bankruptcy demand more permits than if they were financially secure. Consequently, bankruptcy risk in a competitive market for tradable property rights causes an inefficient distribution of individual choices among regulated firms. Moreover, the equilibrium distribution of permits is not independent of the initial distribution of permits. In fact, the inefficiency that is associated with bankruptcy risk is mitigated if financially insecure firms are given a larger share of the initial allocation of permits.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
|
| Identificador: |
28057
http://purl.umn.edu/7384
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| Relação: |
University of Massachusetts, Amherst>Department of Resource Economics>Working Paper Series
ResEc Working Paper
2007-9
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| Formato: |
20
|
