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An Experimental Analysis of Auctioning Emission Allowances Under a Loose Cap AgEcon
Shobe, William; Palmer, Karen L.; Myers, Erica; Holt, Charles; Goeree, Jacob K.; Burtraw, Dallas.
The direct sale of emission allowances by auction is an emerging characteristic of cap-and-trade programs. This study is motivated by the observation that all of the major implementations of cap-and-trade regulations for the control of air pollution have started with a generous allocation of allowances relative to recent emissions history, a situation we refer to as a “loose cap.” Typically more stringent reductions are achieved in subsequent years of a program. We use an experimental setting to investigate the effects of a loose cap environment on a variety of auction types. We find that all auction formats studied are efficient in allocating emission allowances, but auction revenues tend to be lower relative to competitive benchmarks when the cap is...
Tipo: Journal Article Palavras-chave: Auction; Carbon dioxide; Greenhouse gases; Allowance trading; Regional Greenhouse Gas Initiative; RGGI; Cap and trade; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/90827
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State-Level Policies and Regulatory Guidance for Compliance in the Early Years of the SO2 Emission Allowance Trading Program AgEcon
Lile, Ronald D.; Burtraw, Dallas.
The Clean Air Act Amendments (CAAA) of 1990 instituted a historic experiment in emission allowance trading for sulfur dioxide (SO2). A necessary requirement for evaluating this experiment is an understanding of how the cost recovery rules and other guidance given to firms by state-level public utility commissions (PUCs) and elected bodies has affected compliance behavior. From the onset of the CAAA, there has been varied response by state policy-makers toward SO2 compliance. This paper presents a compilation of these actions as they took shape in states that were affected by the SO2 program. Our primary interest is on the proposals that emerged during the embryonic years of the allowance program, from 1990 to 1993, when investment plans for utilities...
Tipo: Working or Discussion Paper Palavras-chave: Clean Air Act Amendments; Sulfur dioxide; Allowance trading; Regulation; Electricity; Public utility commissions; Environmental Economics and Policy; H43; Q2; Q4.
Ano: 1998 URL: http://purl.umn.edu/10828
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