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Opportunity Cost for Free Allocations of Emissions Permits: An Experimental Analysis

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  • Markus Wråke
  • Erica Myers
  • Dallas Burtraw
  • Svante Mandell
  • Charles Holt

Abstract

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Suggested Citation

  • Markus Wråke & Erica Myers & Dallas Burtraw & Svante Mandell & Charles Holt, 2010. "Opportunity Cost for Free Allocations of Emissions Permits: An Experimental Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 46(3), pages 331-336, July.
    • Handle: RePEc:kap:enreec:v:46:y:2010:i:3:p:331-336
    DOI: 10.1007/s10640-010-9343-z
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    References listed on IDEAS

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    1. Fell, Harrison, 2008. "EU-ETS and Nordic Electricity: A CVAR Approach," RFF Working Paper Series dp-08-31, Resources for the Future.
    2. Bunn, Derek W. & Fezzi, Carlo, 2007. "Interaction of European Carbon Trading and Energy Prices," Climate Change Modelling and Policy Working Papers 9092, Fondazione Eni Enrico Mattei (FEEM).
    3. Derek W. Bunn & Carlo Fezzi, 2007. "Interaction of European Carbon Trading and Energy Prices," Working Papers 2007.63, Fondazione Eni Enrico Mattei.
    4. Jacob K. Goeree & Charles A. Holt & Karen Palmer & William Shobe & Dallas Burtraw, 2010. "An Experimental Study of Auctions Versus Grandfathering to Assign Pollution Permits," Journal of the European Economic Association, MIT Press, vol. 8(2-3), pages 514-525, 04-05.
    5. Jos Sijm & Karsten Neuhoff & Yihsu Chen, 2006. "CO 2 cost pass-through and windfall profits in the power sector," Climate Policy, Taylor & Francis Journals, vol. 6(1), pages 49-72, January.
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    Citations

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    Cited by:

    1. Tanaka, Kenta & Higashida, Keisaku & Managi, Shunsuke, 2014. "A laboratory assessment of the choice of vessel size under individual transferable quota regimes," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 58(3), July.
    2. Charles Holt & Erica Myers & Markus Wrake & Dallas Burtraw & Svante Mandell, 2010. "Teaching Opportunity Cost in an Emissions Permit Experiment," International Review of Economic Education, Economics Network, University of Bristol, vol. 9(2), pages 34-42.
    3. Bizer, Kilian & Henger, Ralph & Meub, Lukas & Proeger, Till, 2014. "The political economy of certificates for land use in Germany: Experimental evidence," University of Göttingen Working Papers in Economics 225, University of Goettingen, Department of Economics.
    4. Yang, Mian & Hou, Yaru & Fang, Chao & Duan, Hongbo, 2020. "Constructing energy-consuming right trading system for China's manufacturing industry in 2025," Energy Policy, Elsevier, vol. 144(C).
    5. Frédéric Branger, Philippe Quirion, Julien Chevallier, 2017. "Carbon Leakage and Competitiveness of Cement and Steel Industries Under the EU ETS: Much Ado About Nothing," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    6. Wang, M. & Zhou, P., 2022. "A two-step auction-refund allocation rule of CO2 emission permits," Energy Economics, Elsevier, vol. 113(C).
    7. Silvester van Koten, 2014. "Do Emission Trading Schemes Facilitate Efficient Abatement Investments? An Experimental Study," CERGE-EI Working Papers wp503, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    8. Kopsch, Fredrik, 2012. "Aviation and the EU Emissions Trading Scheme—Lessons learned from previous emissions trading schemes," Energy Policy, Elsevier, vol. 49(C), pages 770-773.
    9. Eva Camacho-Cuena & Till Requate & Israel Waichman, 2012. "Investment Incentives Under Emission Trading: An Experimental Study," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 53(2), pages 229-249, October.
    10. Hong, Taehoon & Koo, Choongwan & Lee, Sungug, 2014. "Benchmarks as a tool for free allocation through comparison with similar projects: Focused on multi-family housing complex," Applied Energy, Elsevier, vol. 114(C), pages 663-675.
    11. Trevor L. Davis & Mark C. Thurber & Frank A. Wolak, 2020. "An Experimental Comparison of Carbon Pricing Under Uncertainty in Electricity Markets," NBER Working Papers 27260, National Bureau of Economic Research, Inc.
    12. Wanlin Yu & Jinlong Luo, 2022. "Impact on Carbon Intensity of Carbon Emission Trading—Evidence from a Pilot Program in 281 Cities in China," IJERPH, MDPI, vol. 19(19), pages 1-19, September.
    13. Timothy N. Cason & Frans P. Vries, 2019. "Dynamic Efficiency in Experimental Emissions Trading Markets with Investment Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 1-31, May.
    14. Tanga Mohr & John C. Whitehead, 2023. "External Validity of Inferred Attribute NonAttendance: Evidence from a Laboratory Experiment with Real and Hypothetical Payoffs," Working Papers 23-05, Department of Economics, Appalachian State University.
    15. Choi, Dong Gu & Thomas, Valerie M., 2012. "An electricity generation planning model incorporating demand response," Energy Policy, Elsevier, vol. 42(C), pages 429-441.
    16. Proeger Till & Meub Lukas & Bizer Kilian & Henger Ralph, 2017. "Die Effizienz von Zuteilungsmechanismen bei Flächenzertifikaten zwischen Versteigerung und Grandfathering – experimentelle Evidenz," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 66(1), pages 80-109, April.
    17. Burtraw, Dallas & McCormack, Kristen, 2017. "Consignment auctions of free emissions allowances," Energy Policy, Elsevier, vol. 107(C), pages 337-344.

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    More about this item

    Keywords

    Auction; Emissions allowances; Grandfathering; C91; D44;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

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