Two Patterns of Price Dynamics were Observed in Greenhouse Gases Emissions Trading Experiment: An Application of Point Equilibrium
AbstractThis paper compares efficiencies of double auction and bilateral trading in GHG emission trading experiments with the addition of two rules, abatement irreversibility of GHG emissions and non-compliance penalty, to Hizen and Saijo (1998). Using a new concept of equilibrium, we found that (i) Results were grouped into two cases. In one case, excessive reductions occurred at the early stage of the experiment and efficiency was relatively low. In the other case, excessive reduction did not occur at the early stage of experiment and efficiency was relatively high. (ii) In both cases, efficiency of double auction was higher than that of bilateral trading. (iii) Emissions trading lowered emissions reduction costs. (iv) Excessive emissions reduction occurred in almost all the sessions.
Download InfoIf 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.
Bibliographic InfoPaper provided by Institute of Social and Economic Research, Osaka University in its series ISER Discussion Paper with number 0557.
Date of creation: Oct 2001
Date of revision:
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.:
- R. Andrew Muller & Stuart Mestelman, 1998.
"What have we learned from emissions trading experiments?,"
Managerial and Decision Economics,
John Wiley & Sons, Ltd., vol. 19(4-5), pages 225-238.
- Stuart Mestelman & Andrew Muller, 1997. "What Have We Learned From Emissions Trading Experiments?," McMaster Experimental Economics Laboratory Publications 1997-03, McMaster University.
- Bohm, Peter & Carlen, Bjorn, 1999. "Emission quota trade among the few: laboratory evidence of joint implementation among committed countries," Resource and Energy Economics, Elsevier, vol. 21(1), pages 43-66, January.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fumiko Matsumoto).
If references are entirely missing, you can add them using this form.