IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/52751.html
   My bibliography  Save this paper

Sulfur allowance trading and the regional clean air incentives market: How similar are the programs really?

Author

Listed:
  • Schwarze, Reimund
  • Zapfel, Peter

Abstract

This paper investigates in detail the design parameters of the two most prominent U.S. tradeable emission permit program - the U.S. EPA Sulfur Allowance Trading Program and the South Californian Regional Clean Air Incentives Market (RECLAIM). In contrast to expectations and the existing literature the two programs turn out to be rather different in several important design parameter choices. Common elements emerge primarily in the existence of an ambitious, quantified environmental target, stringent emission monitoring methods and high penalties for non-compliance, the importance of a competitive permit market, and some compromises necessary in order to gain political acceptability for the instrument and program.

Suggested Citation

  • Schwarze, Reimund & Zapfel, Peter, 1998. "Sulfur allowance trading and the regional clean air incentives market: How similar are the programs really?," MPRA Paper 52751, University Library of Munich, Germany, revised 02 Nov 1999.
  • Handle: RePEc:pra:mprapa:52751
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/52751/1/MPRA_paper_52709.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Foster, Vivien & Hahn, Robert W, 1995. "Designing More Efficient Markets: Lessons from Los Angeles Smog Control," Journal of Law and Economics, University of Chicago Press, vol. 38(1), pages 19-48, April.
    2. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    3. Burtraw, Dallas, 1995. "Cost Savings sans Allowance Trades? Evaluating the SO2 Emission Trading Program to Date," Discussion Papers dp-95-30-rev, Resources For the Future.
    4. Coggins, Jay S. & Swinton, John R., 1996. "The Price of Pollution: A Dual Approach to Valuing SO2Allowances," Journal of Environmental Economics and Management, Elsevier, vol. 30(1), pages 58-72, January.
    5. Cason Timothy N., 1993. "Seller Incentive Properties of EPA's Emission Trading Auction," Journal of Environmental Economics and Management, Elsevier, vol. 25(2), pages 177-195, September.
    6. Tom Tietenberg, 1995. "Tradeable permits for pollution control when emission location matters: What have we learned?," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 5(2), pages 95-113, March.
    7. Douglas R. Bohi & Dallas Burtraw, 1991. "Avoiding regulatory gridlock in the acid rain program," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 10(4), pages 676-684.
    8. Winebrake, James J. & Farrell, Alexander E. & Bernstein, Mark A., 1995. "The clean air act's sulfur dioxide emissions market: Estimating the costs of regulatory and legislative intervention," Resource and Energy Economics, Elsevier, vol. 17(3), pages 239-260, November.
    9. Howe, Charles W & Lee, Dwight R, 1983. "Organising the Receptor Side of Pollution Rights Markets," Australian Economic Papers, Wiley Blackwell, vol. 22(41), pages 280-289, December.
    10. Ger Klaassen & Andries Nentjes, 1997. "Sulfur Trading Under the 1990 CAAA in the US: An Assessment of First Experiences," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 153(2), pages 384-384, June.
    11. Karl Hausker, 1992. "The politics and economics of auction design in the market for sulfur dioxide pollution," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(4), pages 553-572.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Bräuer, Wolfgang & Stronzik, Marcus & Michaelowa, Axel, 2000. "Die Koexistenz von Zertifikatemärkten für grünen Strom und CO2-Emissionen : wer gewinnt und wer verliert?," HWWA Discussion Papers 96, Hamburg Institute of International Economics (HWWA).

    More about this item

    Keywords

    Environmental regulation; tradeable permits; policy design; Sulfur Allowance Trading; RECLAIM;

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

    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:pra:mprapa:52751. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.