Multipollutant Markets
Abstract
I study the optimal design of marketable permit systems to regulate various pollutants (e.g., air pollution in urban areas) when the regulator lives in a real world of imperfect information and incomplete enforcement. I show that the regulator should hale pollution markets integrated through optimal exchange rates when the marginal-abatement cost curves in the different markets are steeper than the marginal-benefit curves; otherwise he should keep markets separated. I also find that incomplete enforcement reduces the advantage of market integration. Copyright 2001 by the RAND Corporation.Download Info
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Bibliographic Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.
Volume (Year): 32 (2001)
Issue (Month): 4 (Winter)
Pages: 762-74
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Woodward, Richard T. & Han, Manseung, 2004. "Double Dipping In Pollution Markets," 2004 Annual meeting, August 1-4, Denver, CO 20323, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
- Yeo, Boon-Ling & Anastasiadis, Simon & Kerr, Suzi & Browne, Oliver, 2012. "Synergies between Nutrient Trading Scheme and the New Zealand Greenhouse Gas (GHG) Emissions Trading Scheme (ETS) in the Lake Rotorua Catchment," 2012 Conference, August 31, 2012, Nelson, New Zealand 144270, New Zealand Agricultural and Resource Economics Society.
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- Krysiak, Frank C. & Schweitzer, Patrick, 2010. "The optimal size of a permit market," Journal of Environmental Economics and Management, Elsevier, vol. 60(2), pages 133-143, September.
- Roberton Williams, 2002. "Prices vs. Quantities vs. Tradable Quantities," NBER Working Papers 9283, National Bureau of Economic Research, Inc.
- Woodward, Richard T, 2010.
"Double Dipping in Environmental Markets,"
MPRA Paper
26185, University Library of Munich, Germany.
- Woodward, Richard T., 2011. "Double-dipping in environmental markets," Journal of Environmental Economics and Management, Elsevier, vol. 61(2), pages 153-169, March.
- Jorge Rivera C. & Francisco Martínez, 2005. "Consumption rigths: a market mechanism to redistribute wealth," Working Papers wp215, University of Chile, Department of Economics.
- Carlos Hervés-Beloso & Francisco Martínez & Jorge Rivera, 2012. "Walrasian prices in markets with tradable rights," Economic Theory, Springer, vol. 49(2), pages 497-512, February.
- Heberling, Matthew T. & García, Jorge H. & Thurston, Hale W., 2010. "Does encouraging the use of wetlands in water quality trading programs make economic sense?," Ecological Economics, Elsevier, vol. 69(10), pages 1988-1994, August.
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