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Bankable Pollution Permits under Uncertainty and Optimal Risk Management Rules: Theory and Empirical Evidence

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  • Julien Chevallier
  • Johanna Etner
  • Pierre-André Jouvet

Abstract

An increase in the demand for agricultural goods leads to the use of more intensive cultivation methods. Though Ricardo sees no difficulties in the intensification process, their existence is revealed by the possible occurrence of multiple equilibria. A general theory of intensive rent is based on a formal parallel with single-product systems without land.

Suggested Citation

  • Julien Chevallier & Johanna Etner & Pierre-André Jouvet, 2008. "Bankable Pollution Permits under Uncertainty and Optimal Risk Management Rules: Theory and Empirical Evidence," EconomiX Working Papers 2008-25, University of Paris Nanterre, EconomiX.
  • Handle: RePEc:drm:wpaper:2008-25
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    References listed on IDEAS

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    14. Emilie Alberola & Julien Chevallier, 2009. "European Carbon Prices and Banking Restrictions: Evidence from Phase I (2005-2007)," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 51-80.
    15. Christian Gollier, 2004. "The Economics of Risk and Time," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262572249, December.
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    17. Paul Koutstaal, 1997. "economic policy and climate change," Books, Edward Elgar Publishing, number 1316.
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    19. Maria Mansanet-Bataller & Angel Pardo & Enric Valor, 2007. "CO2 Prices, Energy and Weather," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 73-92.
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    Cited by:

    1. repec:dau:papers:123456789/10237 is not listed on IDEAS
    2. Christian de Perthuis & Raphaël Trotignon, 2013. "The European CO2 allowances market: issues in the transition to Phase III," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 23, pages 500-520, Edward Elgar Publishing.
    3. Julien Chevallier, 2009. "Intertemporal Emissions Trading and Market Power: A Dominant Firm with Competitive Fringe Model," Working Papers halshs-00388207, HAL.
    4. Christian de Perthuis & Raphaël Trotignon, 2017. "Marché européen des quotas de CO2 : Les enjeux du passage à la phase 3," Working Papers hal-01504990, HAL.
    5. Julien Chevallier, 2010. "The European carbon market (2005-2007): banking, pricing and risk-hedging strategies," Working Papers halshs-00458787, HAL.

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    More about this item

    Keywords

    Firm behavior; Tradable permits; Policy risk; EU ETS;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • 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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