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An Experimental Investigation of Hard and Soft Price Ceilings in Emissions Permit Markets AgEcon
Perkis, David F.; Cason, Timothy N.; Tyner, Wallace E..
Tradable emissions permits have been implemented to control pollution levels in various markets around the world and represent a major component of legislative efforts to control greenhouse gas (GHG) emissions in the United States. Because permits are supplied for a fixed level of pollution, allowing the market for permits to determine the price, there is a desire for price control mechanisms which would protect firms otherwise susceptible to price spikes caused by fluctuations in the demand for pollution abatement. We test permit markets in an experimental laboratory setting to determine the effectiveness of several price control mechanisms. Evidence suggests that both permit supply adjustments and traditional price ceilings (hard ceilings) effectively...
Tipo: Presentation Palavras-chave: Tradable Emissions Permit Market; Price Controls; Hard Ceiling; Soft Ceiling; Experimental Economics; Environmental Economics and Policy; Institutional and Behavioral Economics; Resource /Energy Economics and Policy.
Ano: 2012 URL: http://purl.umn.edu/124096
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