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The Effect of Allowance Allocations on Cap-and-Trade System Performance AgEcon
Hahn, Robert W.; Stavins, Robert N..
We examine an implication of the “Coase Theorem” which has had an important impact both on environmental economics and on public policy in the environmental domain. Under certain conditions, the market equilibrium in a cap-and-trade system will be cost-effective and independent of the initial allocation of tradable rights. That is, the overall cost of achieving a given aggregate emission reduction will be minimized, and the final allocation of permits will be independent of the initial allocation. We call this the independence property. This property is very important because it allows equity and efficiency concerns to be separated in a relatively straightforward manner. In particular, the property means that the government can establish the overall...
Tipo: Working or Discussion Paper Palavras-chave: Cap-and-Trade System; Tradable Permits; Coase Theorem; Allowance Allocation; Environmental Economics and Policy; Q580; H110; L510.
Ano: 2010 URL: http://purl.umn.edu/92707
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What Has Kyoto Wrought? The Real Architecture of International Tradable Permit Markets AgEcon
Hahn, Robert W.; Stavins, Robert N..
We investigate a central issue in the climate change debate associated with the Kyoto Protocol: the likely performance of international greenhouse gas trading mechanisms. Virtually all design studies and many projections of the costs of meeting the Kyoto targets have assumed that an international trading program can be established that minimizes the costs of meeting overall goals. This conclusion rests on several simplifying assumptions. We focus on one important issue that has received little, if any, attention: the interaction between an international trading regime and a heterogeneous set of domestic greenhouse policy instruments. This is an important issue because the Protocol explicitly provides for domestic sovereignty regarding instrument choice,...
Tipo: Working or Discussion Paper Palavras-chave: Climate change; Tradable permits; International policy; Environmental Economics and Policy; Q28; Q25.
Ano: 1999 URL: http://purl.umn.edu/10747
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National Environmental Policy During the Clinton Years AgEcon
Cavanagh, Sheila M.; Hahn, Robert W.; Stavins, Robert N..
We review major developments in national environmental policy during the Clinton Administration, defining environmental policy to include not only the statutes, regulations, and policies associated with reducing pollution, but also major issues of public lands management and species preservation. We adopt economic criteria for policy assessment - principally efficiency, cost-effectiveness, and distributional equity. While the paper is primarily descriptive, we highlight a set of five themes that emerge in the economics of national environmental policy over the past decade. First, over the course of the decade, national environmental targets were made more stringent, and environmental quality improved. Most important among the new targets were the National...
Tipo: Working or Discussion Paper Palavras-chave: Air Quality Standards; Benefit-cost analysis; Voluntary programs; Environmental Economics and Policy.
Ano: 2001 URL: http://purl.umn.edu/10703
Registros recuperados: 3
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