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Registros recuperados: 41
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CO2 Allowance Allocation in the Regional Greenhouse Gas Initiative and the Effect on Electricity Investors AgEcon
Burtraw, Dallas; Kahn, Danny; Palmer, Karen L..
The Regional Greenhouse Gas Initiative (RGGI) is an effort by nine Northeast and Mid-Atlantic states to develop a regional, mandatory, market-based cap-and-trade program to reduce greenhouse gas (GHG) emissions from the electricity sector. The initiative is expected to lead to an increase in the price of electricity in the RGGI region and beyond. The implications of these changes for the value of electricity-generating assets and the market value of the firms that own them depends on the initial allocation of carbon dioxide allowances, the composition of generating assets owned by the firm, and the locations of those assets. Changes in asset values inside the RGGI region may be positive or negative, whereas changes outside of the RGGI region are almost...
Tipo: Working or Discussion Paper Palavras-chave: Emissions trading; Allowance allocations; Electricity; Air pollution; Auction; Grandfathering; Generation-performance standard; Output-based allocation; Cost-effectiveness; Greenhouse gases; Climate change; Global warming; Carbon dioxide; Asset value; Environmental Economics and Policy; Q2; Q25; Q4; L94.
Ano: 2005 URL: http://purl.umn.edu/10495
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Efficient Emission Fees in the U.S. Electricity Sector AgEcon
Banzhaf, H. Spencer; Burtraw, Dallas; Palmer, Karen L..
This paper provides new estimates of efficient emission fees for sulfur dioxide (SO2) and nitrogen oxides (NOX) emissions in the U.S. electricity sector. The estimates are obtained by coupling a detailed simulation model of the U.S. electricity markets with an integrated assessment model that links changes in emissions with atmospheric transport, environmental endpoints, and valuation of impacts. Efficient fees are found by comparing incremental benefits with emission fee levels. National quantity caps that are equivalent to these fees also are computed, and found to approximate caps under consideration in the current multi-pollutant debate in the U.S. Congress and the recent proposals from the Bush administration for the electricity industry. We also...
Tipo: Working or Discussion Paper Palavras-chave: Emissions trading; Emission fees; Air pollution; Cost-benefit analysis; Electricity; Particulates; Nitrogen oxides; NOx; Sulfur dioxide; SO2; Health benefits; Environmental Economics and Policy; Q2; Q4; D61.
Ano: 2002 URL: http://purl.umn.edu/10505
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From SO2 to Greenhouse Gases: Trends and Events Shaping Future Emissions Trading Programs in the United States AgEcon
Kruger, Joseph.
Cap-and-trade programs have become widely accepted for the control of conventional air pollution in the United States. However, there is still no political consensus to use these programs to address greenhouse gases. Meanwhile, in the wake of the success of the U.S. SO2 and NOx trading programs, private companies, state governments, and the European Union are developing new trading programs or other initiatives that may set precedents for a future national U.S. greenhouse gas trading scheme. This paper summarizes the literature on the "lessons learned" from the SO2 trading program for greenhouse gas trading, including lessons about the potential differences in design that may be necessary because of the different sources, science, mitigation options, and...
Tipo: Working or Discussion Paper Palavras-chave: Climate change; Emissions trading; European Union; U.S. states; Corporate environmentalism; Environmental Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/10819
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The Use of Markets To Increase Private Investment in Environmental Stewardship AgEcon
Ribaudo, Marc; Hansen, LeRoy T.; Hellerstein, Daniel; Greene, Catherine R..
U.S. farmers and ranchers produce a wide variety of commodities for food, fuel, and fiber in response to market signals. Farms also contain significant amounts of natural resources that can provide a host of environmental services, including cleaner air and water, flood control, and improved wildlife habitat. Environmental services are often valued by society, but because they are a public good—that is, people can obtain them without paying for them—farmers and ranchers may not benefit financially from producing them. As a result, farmers and ranchers under-provide these services. This report explores the use of market mechanisms, such as emissions trading and eco-labels, to increase private investment in environmental stewardship. Such investments could...
Tipo: Report Palavras-chave: Eco-labeling; Environmental service; Emissions trading; Market; Public good; Supply and demand; Transaction cost; Agricultural and Food Policy; Demand and Price Analysis; Environmental Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/56473
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Companies and Regulators in Emissions Trading Programs AgEcon
Kruger, Joseph.
Much has been written about the economic and environmental performance of U.S. emissions trading programs for "acid rain" (sulfur dioxide) and nitrogen oxides. Less explored have been the unique roles and interactions of environmental regulators and the companies they regulate. I first examine how these roles change the way that regulators and companies operate within their own organizations and with each other. Next, I use examples from U.S. trading programs to illustrate the design and administrative features that allow program administrators and industry to best fulfill their respective roles. Finally, I examine briefly whether these features are present in the EU Emissions Trading System and determine the implications for its effectiveness.
Tipo: Working or Discussion Paper Palavras-chave: Emissions trading; Climate change; Environmental management; Information technology; Environmental Economics and Policy.
Ano: 2005 URL: http://purl.umn.edu/10489
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Fiddling while carbon burns: why climate policy needs emission pervasive pricing as well as technology promotion AgEcon
Pezzey, John C.V.; Jotzo, Frank; Quiggin, John C..
Effective climate policy requires global emissions of greenhouse gases to be cut substantially, which in energy sectors can be achieved by lower emissions supply technologies, greater energy use efficiency, and substitution in demand. For policy to be efficient requires fairly uniform, pervasive emission pricing from taxes, permit trading, or hybrid combinations of the two, as well as significant government support for low-emission technologies. We compare the kind of technology-focused climate policies currently adopted by Australia and the USA, the ‘'Asia-Pacific Partnership on Clean Development and Climate'’ (AP6), against this ideal policy yardstick. We find they omit the need for emission pricing to achieve abatement effectively and efficiently; they...
Tipo: Conference Paper or Presentation Palavras-chave: Greenhouse gas emissions; Abatement; Emission taxes; Emissions trading; Technology policy; Innovation; Asia-Pacific Partnership; AP6; Environmental Economics and Policy.
Ano: 2007 URL: http://purl.umn.edu/10395
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Allocation of CO2 Emissions Allowances in the Regional Greenhouse Gas Cap-and-Trade Program AgEcon
Burtraw, Dallas; Palmer, Karen L.; Kahn, Danny.
Cap-and-trade programs for air emissions have become the widely accepted, preferred approach to cost-effective pollution reduction. One of the important design questions in a trading program is how to initially distribute the emissions allowances. Under the Acid Rain program created by Title IV of the Clean Air Act, most emissions allowances were distributed to current emitters on the basis of a historic measure of electricity generation in an approach known as grandfathering. Recent proposals have suggested two alternative approaches: allocation according to a formula that is updated over time according to some performance metric in a recent year (the share of electricity generation or something else) and auctioning allowances to the highest bidders....
Tipo: Working or Discussion Paper Palavras-chave: Emissions trading; Allowance allocations; Electricity; Air pollution; Auction; Grandfathering; Generation performance standard; Output-based allocation; Cost-effectiveness; Greenhouse gases; Climate change; Global warming; Carbon dioxide; Sulfur dioxide; Nitrogen oxides; Mercury; Environmental Economics and Policy; Q2; Q25; Q4; L94.
Ano: 2005 URL: http://purl.umn.edu/10650
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Linking the Australian Emissions Trading Scheme AgEcon
Jotzo, Frank; Betz, Regina.
A detailed proposal for an economy-wide emissions trading scheme in Australia was tabled by the government in December 2008 with a proposed start date for mid-2010. The government proposes unilateral linking, with no initial bilateral linkages, through the clean development mechanism and joint implementation. The proposal has resulted in serious concern about significant permit price increases and price capping, leading to a ban on permit sales. This research paper evaluates the proposed Australian scheme in relation to international emissions trading and linkages. Different scenarios for the Australian permit price under unilateral linking are considered. Options for bilateral linking with the European Union and New Zealand schemes are also evaluated,...
Tipo: Report Palavras-chave: Climate change policy; Australia; Emissions trading; International linkages; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/94814
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Cap-and-Trade: The Evolution of an Economic Idea AgEcon
Tietenberg, Tom.
Over the past three decades or so, emissions trading has evolved from an idea that was little more than an academic curiosity to its current role as the centerpiece of the U.S. program to control acid rain and international programs to control greenhouse gases. This essay identifies some of the key milestones of this evolution, describes how that evolution was shaped by economic analysis, elicits some of the lessons about the design and effectiveness of emissions trading that have emerged from analysis of that evolution, and points out a few of the barriers that lie in the path of achieving a truly global carbon market.
Tipo: Journal Article Palavras-chave: Emissions trading; Cap-and-trade; Climate policy; Environmental Economics and Policy; Political Economy; Public Economics.
Ano: 2010 URL: http://purl.umn.edu/95836
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An Experimental Analysis of Compliance in Dynamic Emissions Markets AgEcon
Stranlund, John K.; Murphy, James J.; Spraggon, John M..
Two important design elements for emission trading programs are whether and to what extent firms are able to bank emissions permits, and how these programs are to be enforced. In this paper we present results from laboratory emissions markets designed to investigate enforcement and compliance when these markets allow permit banking. Banking is motivated by a decrease in the aggregate permit supply in the middle of multi-period trading sessions. Consistent with theoretical insights, our experiments suggest that high permit violation penalties have little deterrence value in dynamic emissions markets, and that the main challenge of enforcing these programs is to motivate truthful self-reports of emissions.
Tipo: Working or Discussion Paper Palavras-chave: Compliance; Enforcement; Emissions trading; Laboratory experiments; Permit markets; Permit banking; Environmental Economics and Policy; Public Economics; C91; L51; Q58.
Ano: 2010 URL: http://purl.umn.edu/93966
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The EU Emissions Trading Directive: Opportunities and Potential Pitfalls AgEcon
Kruger, Joseph; Pizer, William A..
The European Union is on the verge of establishing an emissions trading program ten times the size of the Acid Rain trading program in the United States. Its design takes advantage of many lessons from existing experience with trading programs, as well as economic theory, and innovates in important ways. While we view this as an impressive development, concerns about equity, enforcement, and efficiency remain. Specifically, a lack of data and weaker environmental institutions in some EU Member States raises questions about both allowance allocations and compliance and enforcement. Although much attention has focused on whether prices will be "too low" in the first phase of the program, a greater risk is that uncertainty about program elements, technology...
Tipo: Working or Discussion Paper Palavras-chave: European Union; Climate change; Emissions trading; Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/10679
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Auctioning Greenhouse Gas Emissions Permits in Australia AgEcon
Betz, Regina; Seifert, Stefan; Cramton, Peter; Kerr, Suzi.
Allocating permits based on individual historical emissions (‘grandfathering’), or industry benchmark data, is an important design aspect of an emissions trading scheme. Free permit allocation has proven complex and inefficient (particularly in the European Union) with distribution implications also politically difficult to justify. For these reasons, auctioning emissions permits has become more popular than allocating permits. The European Union is now moving towards auctioning more than 50 per cent of all permits in 2013. In the US, the Regional Greenhouse Gas Initiative (RGGI) has started with auctioning 100 per cent of permits. The Australian proposal for a Carbon Pollution Reduction Scheme (CPRS) also provides for auctioning a significant share of...
Tipo: Report Palavras-chave: Climate policy; Greenhouse gases; Auctions; Emissions trading; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/94878
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The Effect of Pollution Permit Allocations on Firm-Level Emissions AgEcon
Fowlie, Meredith; Perloff, Jeffrey M..
According to the Coase theorem, if property rights to pollute are clearly established and emissions markets nearly eliminate transaction costs, the market equilibrium will be independent of how the permits are initially allocated across firms. Using panel data from Southern California's RECLAIM program, we find that initial allocations are a statistically significant determinant of firm-level emissions. This relationship between allocation and emissions is stronger among firms with relatively high transaction costs. Thus, care must be exercised in the initial allocation of permits to ensure efficiency.
Tipo: Working or Discussion Paper Palavras-chave: Emissions trading; Transaction costs; Environmental Economics and Policy.
Ano: 2004 URL: http://purl.umn.edu/25116
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Do baseline requirements hinder trades in water quality trading programs? AgEcon
Ribaudo, Marc; Ghosh, Gaurav S.; Shortle, James S..
The Environmental Protection Agency and the U.S. Department of Agriculture are promoting point/nonpoint trading as a way of reducing the costs of meeting water quality goals while giving nonpoint sources a larger role in meeting those goals. Farms can create offsets or credits in a point/nonpoint trading program by implementing management practices such as conservation tillage, nutrient management, and buffer strips. To be eligible to sell credits, farmers must first comply with baseline requirements. The EPA defines a baseline as the pollutant control requirements that apply to a seller in the absence of trading. EPA guidance recommends that the baseline for nonpoint sources be management practices that are consistent with the water quality goal. A...
Tipo: Conference Paper or Presentation Palavras-chave: Nonpoint pollution; Emissions trading; Management practices; Environmental Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/49258
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An Experimental Economic Analysis of Carbon Trading Options for Australia AgEcon
Tisdell, John G.; Grainger, Corinne.
Australia is currently developing a carbon emissions trading program. The Garnaut report recommendations include options for emissions trajectories, coverage, permit allocation, inter-temporality, governance and compliance. This paper reports the results of a series of economic experiments in which we explored spot and future markets given high and low levels of carbon credit reductions. The results provide important insights to the current debate in Australia and highlight the importance of well crafted market design.
Tipo: Conference Paper or Presentation Palavras-chave: Carbon trading; Emissions trading; Future markets; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/96661
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Cost-Effective Reduction of NOx Emissions from Electricity Generation AgEcon
Burtraw, Dallas; Palmer, Karen L.; Bharvirkar, Ranjit; Paul, Anthony.
This paper analyzes the benefits and costs of policies to reduce nitrogen oxides (NOX) emissions from electricity generation in the United States. Because emissions of NOX contribute to the high concentration of atmospheric ozone in the eastern states that is associated with health hazards, the U.S. Environmental Protection Agency (EPA) has called on eastern states to formulate state implementation plans (SIPs) for reducing NOX emissions. Our analysis considers three NOX reduction scenarios: a summer seasonal cap in the eastern states covered by EPA's NOX SIP Call, an annual cap in the same SIP Call region, and a national annual cap. All scenarios allow for emissions trading. Although EPA's current policy is to implement a seasonal cap in the SIP Call...
Tipo: Working or Discussion Paper Palavras-chave: Emissions trading; Electricity; Particulates; Nitrogen oxides; NOx; Health benefits; Environmental Economics and Policy; Q2; Q4.
Ano: 2001 URL: http://purl.umn.edu/10677
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The challenges of finding efficient policy measures to reduce Australia’s agricultural Greenhouse gas emissions AgEcon
King, Helen.
A comprehensive emissions trading scheme (ETS) is Australia’s principal climate change policy instrument. There are undoubtedly benefits of full ETS coverage. However, if emissions that cannot be affordably, reasonably and accurately measured are included, these must be balanced against potential costs. This report explores why agriculture is different from other sectors. Agriculture’s diffuse and diverse emissions are inherently difficult to measure. They also fluctuate in response to environmental factors such as climate and biophysical characteristics. It is problematic to include the agriculture sector in the ETS, at reasonable cost and with incentives for behaviour change at the emission source. This is because of the climate and biophysical...
Tipo: Report Palavras-chave: Agriculture; Greenhouse; Abatement; Emissions trading; Agricultural and Food Policy; Environmental Economics and Policy.
Ano: 2008 URL: http://purl.umn.edu/94809
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Strategic Choice of Domestic Environmental Policy Instrument and International Emissions Trading Scheme in an Open Economy with Imperfect Competition AgEcon
Boom, Jan Tjeerd.
This paper presents a model of imperfect international competition. Within this framework, the optimal choice of national environmental policy instrument and international emissions trading scheme is discussed. The choice of national instrument is restricted to absolute and relative standards, which form the basis for permit and credit trading respectively. It is shown that relatives standards and credit trading lead to higher output than emission ceilings and permit trading. I find that governments want to increase production beyond the level reached with emission ceilings and therefore prefer relative standards. Furthermore, international emissions trading is only optimal when the country imports emission quotas, and in several cases, governments will...
Tipo: Working or Discussion Paper Palavras-chave: Environmental policy; Emissions trading; Credit trading; International trade; Imperfect competition; Strategic behavior; Environmental Economics and Policy; F12; L51; Q25; Q28.
Ano: 2003 URL: http://purl.umn.edu/24177
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The role of real options analysis in the design of a greenhouse gas emissions trading scheme AgEcon
Lambie, Neil Ross.
Analysing the effect of a greenhouse gas emissions trading scheme (ETS) on energy-intensive industries using a simple model of the long-run equilibrium fails to fully capture the design implications of a scheme. When we allow for imperfect market structures and uncertainty, it is more useful to focus on how an industry is affected by the scheme’s design in moving to its long-run equilibrium. A real options modelling approach that analyses how firms in these industries are likely to respond to an ETS through their investment behaviour is proposed as a more insightful method for public policy analysis.
Tipo: Conference Paper or Presentation Palavras-chave: Climate change policy; Emissions trading; Investment; Real options; Environmental Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/47626
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Russlands Ratifikation des Kyoto-Protokolls - ein kritisches Pladoyer AgEcon
Schwerd, Joachim.
At the beginning of December 2003 the ninth conference of the parties (COP) of the UN framework convention on climate change (Rio declaration 1992) will take place. This meeting is crucial as it depends only on Russia's ratification to get the Kyoto protocol started soon. This paper reflects the current state of the protocol and highlights the particular features of COP 9, e.g. the double ratification hurdle, which - as a technical speciality of the protocol - was suitable to strengthen Russia's position in these negotiations up to now. It will be discussed, why Russia shall comply with the protocol for its own sake, too. Only one of the flexible Kyoto instruments is considered hereby: emissions trading. Two arguments are used for making the point, that it...
Tipo: Working or Discussion Paper Palavras-chave: Kyoto protocol; Emissions trading; Dynamic efficiency; Russia; Environmental Economics and Policy; B52; D78; D90; F18.
Ano: 2003 URL: http://purl.umn.edu/26184
Registros recuperados: 41
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