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Monitoring and Enforcement of Climate Policy

  • Hilary Sigman

This chapter applies recent research on environmental enforcement to a potential U.S. program to control greenhouse gases, especially through emission trading. Climate policies present the novel problem of integrating emissions reductions that are relatively easy to monitor (such as carbon dioxide emissions from fossil fuels) with those that may be very difficult to monitor (such as some emissions of other greenhouse gases). The paper documents the heterogeneity in monitoring costs across different parts of current carbon markets. It argues that a broad emission trading system that includes more difficult-to-enforce components can provide less incentive to violate the law than a narrower program; thus, the government may not find it more costly to assure compliance with a broader program.

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File URL: http://www.nber.org/papers/w16121.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16121.

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Date of creation: Jun 2010
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Publication status: published as Monitoring and Enforcement of Climate Policy , Hilary Sigman. in The Design and Implementation of U.S. Climate Policy , Fullerton and Wolfram. 2012
Handle: RePEc:nbr:nberwo:16121
Note: EEE
Contact details of provider: Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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  1. De Perthuis, Christian & Convery, Frank J. & Ellerman, Denny, 2010. "Pricing carbon : the European Union Emissions Trading Scheme," Economics Papers from University Paris Dauphine 123456789/10174, Paris Dauphine University.
  2. James Andreoni & Brian Erard & Jonathan Feinstein, 1998. "Tax Compliance," Journal of Economic Literature, American Economic Association, vol. 36(2), pages 818-860, June.
  3. Pizer, William & Kruger, Joseph, 2004. "The EU Emissions Trading Directive: Opportunities and Potential Pitfalls," Discussion Papers dp-04-24, Resources For the Future.
  4. Malik, Arun S., 1990. "Markets for pollution control when firms are noncompliant," Journal of Environmental Economics and Management, Elsevier, vol. 18(2), pages 97-106, March.
  5. James B. Bushnell, 2011. "The Economics of Carbon Offsets," NBER Chapters, in: The Design and Implementation of U.S. Climate Policy, pages 197-209 National Bureau of Economic Research, Inc.
  6. Bruce Mizrach, 2009. "Integration of the Global Emissions Trading Markets," Departmental Working Papers 200901, Rutgers University, Department of Economics.
  7. Sandeep Kapur, 2009. "An Economic Model of Whistle-Blower Policy," Journal of Law, Economics and Organization, Oxford University Press, vol. 25(1), pages 157-182, May.
  8. repec:cup:cbooks:9780521023894 is not listed on IDEAS
  9. Montero, Juan-Pablo, 2002. "Prices versus quantities with incomplete enforcement," Journal of Public Economics, Elsevier, vol. 85(3), pages 435-454, September.
  10. Gary S. Becker, 1968. "Crime and Punishment: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 76, pages 169.
  11. repec:cup:cbooks:9780521196475 is not listed on IDEAS
  12. Marc N. Conte & Matthew J. Kotchen, 2009. "Explaining the Price of Voluntary Carbon Offsets," NBER Working Papers 15294, National Bureau of Economic Research, Inc.
  13. Stranlund, John K. & Dhanda, Kanwalroop Kathy, 1999. "Endogenous Monitoring and Enforcement of a Transferable Emissions Permit System," Journal of Environmental Economics and Management, Elsevier, vol. 38(3), pages 267-282, November.
  14. A. Denny Ellerman & Nick Johnstone & Friedrich Schneider & Alexander F. Wagner & Juan-Pablo Montero & Johann Wackerbauer, 2003. "Tradable Permits," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 4(1), pages 3-32, October.
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