Advanced Search
MyIDEAS: Login

Enforcing Transferable Permit Systems in the Presence of Market Power

Contents:

Author Info

  • Carlos Chavez

    ()
    (Departamento de Economía, Universidad de Concepción)

  • John K. Stranlund

Abstract

We derive an enforcementstrategy for a transferable permit system inthe presence of market power that achievescomplete compliance in a cost-effective manner.We show that the presence of a firm with marketinfluence makes designing an enforcementstrategy more difficult than enforcing aperfectly competitive system. We alsore-consider Hahn's (1984) suggestion that afirm with market influence should be allocatedpermits so that it chooses to not participatein the permit market. When enforcement and itscosts are taken into account, Hahn's suggestiondoes not hold except in a very special case. Copyright Kluwer Academic Publishers 2003

(This abstract was borrowed from another version of this item.)

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://educacion.facea.udec.cl/economia/?q=node/113
Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Hugo Salgado)
Download Restriction: no

Bibliographic Info

Paper provided by Departamento de Economía, Universidad de Concepción in its series Working Papers with number 04-2000.

as in new window
Length:
Date of creation: 2000
Date of revision:
Handle: RePEc:cnc:wpaper:04-2000

Contact details of provider:
Postal: Victoria 471, Conceptión
Web page: http://economia.udec.cl
More information through EDIRC

Related research

Keywords:

Other versions of this item:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Hahn, Robert W, 1984. "Market Power and Transferable Property Rights," The Quarterly Journal of Economics, MIT Press, vol. 99(4), pages 753-65, November.
  2. Harford, Jon D., 1987. "Self-reporting of pollution and the firm's behavior under imperfectly enforceable regulations," Journal of Environmental Economics and Management, Elsevier, vol. 14(3), pages 293-303, September.
  3. Misiolek, Walter S. & Elder, Harold W., 1989. "Exclusionary manipulation of markets for pollution rights," Journal of Environmental Economics and Management, Elsevier, vol. 16(2), pages 156-166, March.
  4. Joskow, Paul L & Schmalensee, Richard & Bailey, Elizabeth M, 1998. "The Market for Sulfur Dioxide Emissions," American Economic Review, American Economic Association, vol. 88(4), pages 669-85, September.
  5. Malik, Arun S, 1992. "Enforcement Costs and the Choice of Policy Instruments for Controlling Pollution," Economic Inquiry, Western Economic Association International, vol. 30(4), pages 714-21, October.
  6. Kling, Catherine L. & Innes, Robert & Rubin, Jonathan, 1992. "Emission Permits Under Monopoly," Staff General Research Papers 1607, Iowa State University, Department of Economics.
  7. Randolph M. Lyon, 1982. "Auctions and Alternative Procedures for Allocating Pollution Rights," Land Economics, University of Wisconsin Press, vol. 58(1), pages 16-32.
  8. Keeler, Andrew G., 1991. "Noncompliant firms in transferable discharge permit markets: Some extensions," Journal of Environmental Economics and Management, Elsevier, vol. 21(2), pages 180-189, September.
  9. Malik, Arun S., 1990. "Markets for pollution control when firms are noncompliant," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 97-106, March.
  10. Lyon, Randolph M., 1986. "Equilibrium properties of auctions and alternative procedures for allocating transferable permits," Journal of Environmental Economics and Management, Elsevier, vol. 13(2), pages 129-152, June.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Phillia Restiani & Regina Betz, 2010. "A Theoretical Model of Optimal Compliance Decisions under Different Penalty Designs in Emissions Trading Markets," Environmental Economics Research Hub Research Reports 1086, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
  2. John K. Stranlund & James J. Murphy & John M. Spraggon, 2011. "An Experimental Analysis of Compliance in Dynamic Emissions Markets," Working Papers 2011-01, University of Alaska Anchorage, Department of Economics.
  3. Stranlund, John K. & Chávez, Carlos A. & Villena, Mauricio G., 2009. "The optimal pricing of pollution when enforcement is costly," Journal of Environmental Economics and Management, Elsevier, vol. 58(2), pages 183-191, September.
  4. John K. Stranlund, 2006. "Risk Aversion and Compliance in Markets for Pollution Control," Working Papers 2006-2, University of Massachusetts Amherst, Department of Resource Economics.
  5. Cara Inés Villegas & Carlos Chávez, 2004. "Costos de Cumplimiento y Poder de Mercado: Aplicación al Programa de Compensación de Emisiones de Santiago," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 41(122), pages 91-123.
  6. Claire Armstrong, 2008. "Using history dependence to design a dynamic tradeable quota system under market imperfections," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(4), pages 447-457, April.
  7. Yu-Bong Lai, 2007. "The Optimal Distribution of Pollution Rights in the Presence of Political Distortions," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 36(3), pages 367-388, March.
  8. Dormady, Noah C., 2013. "Market power in cap-and-trade auctions: A Monte Carlo approach," Energy Policy, Elsevier, vol. 62(C), pages 788-797.
  9. Cristina Barbot & Ofelia Betancor & M. Pilar Socorro & M. Fernanda Viecens, 2012. "Trade-offs between environmental regulation and market competition: airlines, emission trading systems and entry deterrence," Working Papers 2012-05, FEDEA.
  10. John K. Stranlund, 2006. "The Regulatory Choice of Noncompliance in Emissions Trading Programs," Working Papers 2006-7, University of Massachusetts Amherst, Department of Resource Economics.
  11. Murphy, James J. & Stranlund, John K., 2006. "Direct and market effects of enforcing emissions trading programs: An experimental analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 61(2), pages 217-233, October.
  12. James J. Murphy & John K. Stranlund, 2005. "A Laboratory Investigation of Compliance Behavior under Tradable Emissions Rights: Implications for Targeted Enforcement," Working Papers 2005-1, University of Massachusetts Amherst, Department of Resource Economics.
  13. Requate, Till, 2005. "Environmental Policy under Imperfect Competition : A Survey," Economics Working Papers 2005,12, Christian-Albrechts-University of Kiel, Department of Economics.
  14. Alessio D’Amato & Edilio Valentini, 2011. "Enforcement and environmental quality in a decentralized emission trading system," Journal of Regulatory Economics, Springer, vol. 40(2), pages 141-159, October.
  15. Stranlund, John K. & Moffitt, L. Joe, 2014. "Enforcement and price controls in emissions trading," Journal of Environmental Economics and Management, Elsevier, vol. 67(1), pages 20-38.
  16. Socorro, M. Pilar & Betancor, Ofelia, 2011. "Optimality of environmental policies in air transport markets and changes in the schedule delay: A theoretical approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(9), pages 850-860, November.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cnc:wpaper:04-2000. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Hugo Salgado).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.