A mixed bag: assessment of market performance and firm trading behavior in the NOx RECLAIM program
AbstractTradable permit markets have become an increasingly popular tool to address environmental policy problems. This paper examines the performance of one particular emissions trading market, the Regional Clean Air Incentives Market (RECLAIM) that started operating in Southern California at the beginning of 1994. It first describes how the RECLAIM program is designed and then describes and evaluates the performance of the market by analyzing trading and price data of NOx emission credits. We find that a considerable number of trades have occurred in the market, however, we also find that many facilities are not significantly participating in the market. We conclude by focusing on the firm's perspective in order to attempt an explanation of trading behavior observed to date.
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 Federal Reserve Bank of Chicago in its series Working Paper Series, Regional Economic Issues with number WP-96-12.
Date of creation: 1996
Date of revision:
Contact details of provider:
Postal: P.O. Box 834, 230 South LaSalle Street, Chicago, Illinois 60690-0834
Web page: http://www.chicagofed.org/
More information through EDIRC
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.:
- Hahn, Robert W & Stavins, Robert N, 1992. "Economic Incentives for Environmental Protection: Integrating Theory and Practice," American Economic Review, American Economic Association, vol. 82(2), pages 464-68, May.
- Atkinson, Scott & Tietenberg, Tom, 1991. "Market failure in incentive-based regulation: The case of emissions trading," Journal of Environmental Economics and Management, Elsevier, vol. 21(1), pages 17-31, July.
- Ger Klaassen & David Pearce, 1995. "Introduction," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 5(2), pages 85-93, March.
- Hahn, Robert W, 1989. "Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor's Orders," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 95-114, Spring.
- Cropper, Maureen L & Oates, Wallace E, 1992. "Environmental Economics: A Survey," Journal of Economic Literature, American Economic Association, vol. 30(2), pages 675-740, June.
- Thomas H. Klier & Richard H. Mattoon, 1994. "To trade or not to trade: who participates in RECLAIM?," Working Paper Series, Regional Economic Issues 94-11, Federal Reserve Bank of Chicago.
- Bohi, Douglas R. & Burtraw, Dallas, 1992. "Utility investment behavior and the emission trading market," Resources and Energy, Elsevier, vol. 14(1-2), pages 129-153, April.
- Burtraw, Dallas & Szambelan, Sarah Jo, 2009. "U.S. Emissions Trading Markets for SO2 and NOx," Discussion Papers dp-09-40, Resources For the Future.
- Meredith Fowlie & Stephen P. Holland & Erin T. Mansur, 2009.
"What Do Emissions Markets Deliver and to Whom? Evidence from Southern California's NOx Trading Program,"
NBER Working Papers
15082, National Bureau of Economic Research, Inc.
- Meredith Fowlie & Stephen P. Holland & Erin T. Mansur, 2012. "What Do Emissions Markets Deliver and to Whom? Evidence from Southern California's NOx Trading Program," American Economic Review, American Economic Association, vol. 102(2), pages 965-93, April.
- Lata Gangadharan, 2004. "Analysis of prices in tradable emission markets: an empirical study of the regional clean air incentives market in Los Angeles," Applied Economics, Taylor & Francis Journals, vol. 36(14), pages 1569-1582.
- Larson, Donald F. & Parks, Paul, 1999. "Risks, lessons learned, and secondary markets for greenhouse gas reductions," Policy Research Working Paper Series 2090, The World Bank.
- Fowlie, Meredith & Perloff, Jeffrey M, 2008.
"Distributing pollution rights in cap-and-trade programs : are outcomes independent of allocation?,"
CUDARE Working Paper Series
0968R, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Fowlie, Meredith & Perloff, Jeffrey M., 2008. "Distributing Pollution Rights in Cap-and-Trade Programs: Are Outcomes Independent of Allocation?," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt70f62476, Department of Agricultural & Resource Economics, UC Berkeley.
- Reimund Schwarze & Peter Zapfel, 2000. "Sulfur Allowance Trading and the Regional Clean Air Incentives Market: A Comparative Design Analysis of two Major Cap-and-Trade Permit Programs?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 17(3), pages 279-298, November.
- Donald N. Dewees, 2001.
"Emissions Trading: ERCs or Allowances?,"
University of Wisconsin Press, vol. 77(4), pages 513-526.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bernie Flores).
If references are entirely missing, you can add them using this form.