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Moral hazard and tradeable pollution emission permits

Author

Listed:
  • Francisco Álvarez

    (Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales (ICEI))

  • Ester Camiña

    (Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales (ICEI))

Abstract

Analizamos el mercado de derechos de emisión en un entorno en el que la contaminación, generada a partir de la actividad productiva de las empresas, se determina como la suma de un shock específico de cada empresa y la decisión de las mismas sobre el esfuerzo que dedican a reducir la contaminación. En este escenario, una sociedad mazimizadora de la utilidad desea inducir el esfuerzo óptimo en cada empresa. Dado que este esfuerzo lo decide cada empresa y no lo observa el regulador medioambiental, nos encontramos con un problema de riesgo moral en el que: (i) las empresas (agentes) tienen una ventaja informacional con respecto al regulador (principal) y (ii) el único enlace entre las empresas contaminantes es el mercado de derechos de emisión, que es una manera de intercambiar derechos (contratos) una vez han sido asignados por el regulador. Nuestro objetivo principal es analizar las consecuencias de la existencia de este mercado competitivo puesto que aumenta el conjunto de estrategias de las empresas. Desde un punto de vista teórico, caracterizamos las condiciones bajo las cuales el mercado mejora (o empeora) a las empresas con respecto a la situación sin mercado de derechos.

Suggested Citation

  • Francisco Álvarez & Ester Camiña, 2008. "Moral hazard and tradeable pollution emission permits," Working Papers del Instituto Complutense de Estudios Internacionales 0802, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    • Handle: RePEc:ucm:wpaper:0802
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    References listed on IDEAS

    as
    1. Springer, Urs, 2003. "The market for tradable GHG permits under the Kyoto Protocol: a survey of model studies," Energy Economics, Elsevier, vol. 25(5), pages 527-551, September.
    2. Macho-Stadler, Ines & Perez-Castrillo, David, 2006. "Optimal enforcement policy and firms' emissions and compliance with environmental taxes," Journal of Environmental Economics and Management, Elsevier, vol. 51(1), pages 110-131, January.
    3. Innes, Robert, 2003. "Stochastic pollution, costly sanctions, and optimality of emission permit banking," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 546-568, May.
    4. Xepapadeas, A. P., 1991. "Environmental policy under imperfect information: Incentives and moral hazard," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 113-126, March.
    5. Plourde, Charles & Yeung, David, 1989. "A model of industrial pollution in a stochastic environment," Journal of Environmental Economics and Management, Elsevier, vol. 16(2), pages 97-105, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Moral Hazard; Emission permits market; Riesgo Moral; Mercado de derechos de emisión;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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