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Stockage des permis de pollution en incertitude et règle de partage optimal de risques

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Author Info
Johanna Etner
Pierre-André Jouvet

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Abstract

The well known economic advantage of tradable permits over command and control obviously vanish if firms do not trade because of policy uncertainty. In fact, uncertainty about changes in the permits program could make firms reluctant to invest in tradable permits. This article proposes to give optimal risk sharing rules in order to respond to policy risk. We show how banking of tradable permits can be used as a tool of policy risk control.

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File URL: http://economix.u-paris10.fr/pdf/dt/2006/WP_EcoX_2006-7.pdf
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Publisher Info
Paper provided by University of Paris West - Nanterre la Défense, EconomiX in its series EconomiX Working Papers with number 2006-7.

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Length: 20 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:drm:wpaper:2006-7

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Related research
Keywords: Firm behavior; tradable permits; policy risk.;

Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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This page was last updated on 2009-12-15.

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