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Markets for environmental protection: design and performance incomplete enforcement Author info | Abstract | Publisher info | Download info | Related research | Statistics Juan-Pablo Montero
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Policy makers in different parts of the world are paying more attention to environmental markets (i.e., tradeable permits markets) as an alternative to the traditional command-and-command control approach of setting uniform emission and technology standards. I extend the basic (perfect information) model of a permits market to accommodate for practical considerations including regulator’s asymmetric information on firms’ costs, uncertainty on benefits from pollution control, incomplete enforcement, incomplete monitoring of emissions and the possibility of voluntary participation of non-affected sources. Implications for instrument design and implementation are provided.
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Article provided by University of Chile, Department of Economics in its journal Estudios de Economia .
Volume (Year): 31 (2004)
Issue (Month): 1 Year 2004 (June)
Pages: 79-99
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Handle: RePEc:udc:esteco:v:31:y:2004:i:1:p:79-99Contact details of provider: Web page: http://www.econ.uchile.cl/ More information through EDIRC
For technical questions regarding this item, or to correct its listing, contact: (Verónica Kunze).
Keywords: Environmental regulation ; permits markets ; asymmetric information ; incomplete enforcement. ; Other versions of this item:
Find related papers by JEL classification: L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
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Montero, Juan-Pablo, 2002.
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Montero, Juan-Pablo, 2002.
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Roberts, Marc J. & Spence, Michael, 1976.
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Joskow, Paul L & Schmalensee, Richard & Bailey, Elizabeth M, 1998.
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"Voluntary Compliance with Market-Based Environmental Policy: Evidence from the U.S. Acid Rain Program ,"
Journal of Political Economy ,
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[Downloadable!] (restricted)
Juan Pablo Montero, 2002.
"The Temporal Efficiency of SO2 Emissions Trading ,"
Documentos de Trabajo
225, Instituto de Economía. Pontificia Universidad Católica de Chile..
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[Downloadable!] (restricted)
Montero, Juan-Pablo, 2000.
"Optimal design of a phase-in emissions trading program ,"
Journal of Public Economics ,
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[Downloadable!] (restricted)
Matti Liski & Juan Pablo Montero, 2003.
"A Note on Market Power in an Emission Permits Market with Banking ,"
Documentos de Trabajo
236, Instituto de Economía. Pontificia Universidad Católica de Chile..
[Downloadable!]
Other versions:
Matti Liski & Juan-Pablo Montero, 2004.
"A Note on Market Power in an Emission Permits Market with Banking ,"
Working Papers
0405, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
[Downloadable!] Matti Liski & Juan-Pablo Montero, 2005.
"A Note on Market Power in an Emission Permits Market with Banking ,"
Environmental & Resource Economics ,
European Association of Environmental and Resource Economists, vol. 31(2), pages 159-173, 06.
[Downloadable!] (restricted)
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