IDEAS home Printed from https://ideas.repec.org/a/ucp/jaerec/doi10.1086-708908.html
   My bibliography  Save this article

Bankability and Information in Pollution Policy

Author

Listed:
  • Garth Heutel

Abstract

I assess the role of bankability and information in environmental policy design. I develop a model demonstrating that banking and borrowing can be allowed for a price policy as well as a quantity policy. I compare expected welfare between price and quantity policies, with and without banking, under several different scenarios regarding uncertainty and information. A bankable policy can provide an efficiency improvement by allowing for smoothing of costs, though it is not necessarily more efficient than a policy that does not allow banking. The ranking of prices versus quantities and of bankability versus nonbankability depends on both the slopes of marginal costs and benefits and on the specification of uncertainty and information.

Suggested Citation

  • Garth Heutel, 2020. "Bankability and Information in Pollution Policy," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 7(4), pages 779-799.
    • Handle: RePEc:ucp:jaerec:doi:10.1086/708908
    DOI: 10.1086/708908
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1086/708908
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: http://dx.doi.org/10.1086/708908
    Download Restriction: Access to the online full text or PDF requires a subscription.
    File URL: https://libkey.io/10.1086/708908?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

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


    Cited by:

    1. Ino, Hiroaki & Matsumura, Toshihiro, 2021. "Optimality of emission pricing policies based on emission intensity targets under imperfect competition," Energy Economics, Elsevier, vol. 98(C).
    2. Burtraw, Dallas & Holt, Charles & Palmer, Karen & Shobe, William M., 2020. "Quantities with Prices: Price-Responsive Allowance Supply in Environmental Markets," RFF Working Paper Series 20-17, Resources for the Future.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ucp:jaerec:doi:10.1086/708908. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Journals Division (email available below). General contact details of provider: https://www.journals.uchicago.edu/JAERE .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.