The dynamics of pollution permits

Annual Review of Resource Economics

Volumn 7, Issue 1, 2015, Pages 61-79

  Hasegawa, Makoto ^a   Salant, Stephen ^b,c  

^a NATIONAL GRADUATE INSTITUTE FOR POLICY STUDIES   (Japan)

^b UNIVERSITY OF MARYLAND   (United States)

^c RESOURCES FOR THE FUTURE   (United States)

Author keywords

banking; cap and trade; emissions trading; marketable permits

Indexed keywords

EID: 84943239119     PISSN: 19411340     EISSN: 19411359     Source Type: Journal    
DOI: 10.1146/annurev-resource-100913-012507     Document Type: Review

References (44)

1. Biglaiser G, Horowitz JK, Quiggin J. 1995. Dynamic pollution regulation. J. Regul. Econ. 8(1):33-44
2. Burtraw D, Palmer K, Kahn D. 2010. A symmetric safety valve. Energy Policy 38(9):4921-32
3. Cronshaw MB, Kruse JB. 1996. Regulated firms in pollution permit markets with banking. J. Regul. Econ. 9(2):179-89
4. Deaton A, Laroque G. 1992. On the behaviour of commodity prices. Rev. Econ. Stud. 59(1):1-23
5. European Commission. 2003. Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC. Dir., Eur. Comm.
6. Falk I, Mendelsohn R. 1993. The economics of controlling stock pollutants: an efficient strategy for greenhouse gases. J. Environ. Econ. Manag. 25(1):76-88
7. Fell H. 2015. Comparing policies to confront permit over-allocation. Discuss. Pap. 15-17 Resour. Future
8. Fell H, Burtraw D, Morgenstern R, Palmer K. 2012a. Climate policy design with correlated uncertainties in offset supply and abatement cost. Land Econ. 88(3):589-611
9. Fell H, Burtraw D, Morgenstern RD, Palmer KL. 2012b. Soft and hard price collars in a cap-and-trade system: a comparative analysis. J. Environ. Econ. Manag. 64(2):183-98
10. Fell H, MacKenzie IA, Pizer WA. 2012c. Prices versus quantities versus bankable quantities. Resour. Energy Econ. 34(4):607-23
11. Fell H, Morgenstern RD. 2010. Alternative approaches to cost containment in a cap-and-trade system. Environ. Resour. Econ. 47(2):275-97
12. Feng H, Zhao J. 2006. Alternative intertemporal permit trading regimes with stochastic abatement costs. Resour. Energy Econ. 28(1):24-40
13. Gardner BL. 1979. Optimal Stockpiling of Grain. Lexington, MA: Lexington Books
14. Hasegawa M, Salant S. 2014. Cap-and-trade programs under delayed compliance: consequences of interim injections of permits. J. Public Econ. 119:24-34
15. Holland SP, Moore MR. 2012. When to pollute, when to abate? Intertemporal permit use in the Los Angeles NOx market. Land Econ. 88(2):275-99
16. Holland SP, Moore MR. 2013. Market design in cap and trade programs: permit validity and compliance timing. J. Environ. Econ. Manag. 66(3):671-87
17. Innes R. 2003. Stochastic pollution, costly sanctions, and optimality of emission permit banking. J. Environ. Econ. Manag. 45(3):546-68
18. Jacoby HD, Ellerman AD. 2004. The safety valve and climate policy. Energy Policy 32(4):481-91
19. Kling C, Rubin J. 1997. Bankable permits for the control of environmental pollution. J. Public Econ. 64(1):101-15
20. Krugman P. 2008. Trivial intellectual history blogging. N. Y. Times, July 15. http://krugman.blogs.nytimes.com/2008/07/15/trivial-intellectual-history-blogging/
21. Leiby P, Rubin J. 2001. Intertemporal permit trading for the control of greenhouse gas emissions. Environ. Resour. Econ. 19(3):229-56
22. Montgomery WD. 1972. Markets in licenses and efficient pollution control programs. J. Econ. Theory 5(3):395-418
23. Murray BC, Newell RG, Pizer WA. 2009. Balancing cost and emissions certainty: an allowance reserve for cap-and-trade. Rev. Environ. Econ. Policy 3(1):84-103
24. Newell R, Pizer W, Zhang J. 2005. Managing permit markets to stabilize prices. Environ. Resour. Econ. 31(2):133-57
25. Newell RG, Pizer WA. 2003. Regulating stock externalities under uncertainty. J. Environ. Econ. Manag. 45(2):416-32
26. Nordhaus WD. 1994. Managing the Global Commons: The Economics of Climate Change. Cambridge, MA: MIT Press
27. Pizer WA. 1999. The optimal choice of climate change policy in the presence of uncertainty. Resour. Energy Econ. 21(3-4):255-87
28. Pizer WA. 2002. Combining price and quantity controls to mitigate global climate change. J. Public Econ. 85(3):409-34
29. Roll R. 1984. Orange juice and weather. Am. Econ. Rev. 74(5):861-80
30. Rubin JD. 1996. A model of intertemporal emission trading, banking, and borrowing. J. Environ. Econ. Manag. 31(3):269-86
31. Salant SW. 1983. The vulnerability of price stabilization schemes to speculative attack. J. Polit. Econ. 91(1):1-38
32. Salant SW, Henderson D. 1978. Market anticipations of government policies and the price of gold. J. Polit. Econ. 86(4):627-48
33. Samuelson PA. 1957. Intertemporal price equilibrium: a prologue to the theory of speculation. Weltwirtsch. Arch. 79:181-221
34. Samuelson PA. 1971. Stochastic speculative price. PNAS 68(2):335-37
35. Schennach SM. 2000. The economics of pollution permit banking in the context of Title IV of the 1990 Clean Air Act Amendments. J. Environ. Econ. Manag. 40(3):189-210
36. Shobe W, Holt C, Huetteman T. 2015. Elements of emission market design: an experimental analysis of California's market for greenhouse gas allowances. J. Econ. Behav. Organ. 107:402-20
37. Stokey NL, Lucas RE Jr., Prescott EC. 1989. Recursive Methods in Economic Dynamics. Cambridge, MA: Harvard Univ. Press
38. Tietenberg TH. 1985. Emissions Trading: An Exercise in Reforming Pollution Policy. Washington, DC: Resour. Future
39. USEPA. 2005. Rule to reduce interstate transport of fine particulate matter and ozone (Clean Air Interstate Rule); revisions to Acid Rain Program; revisions to the NOx SIP call. 70 Fed. Reg. 25,162 (to be codified at 40 C.F.R. pts. 51, 72, 73, 74, 77, 78, and 96)
40. USEPA. 2011. Federal implementation plans: interstate transport of fine particulate matter and ozone and correction of SIP approvals. 76 Fed. Reg. 48,208 (to be codified at 40 C.F.R. pts. 51, 52, 72, 78, and 97)
41. Weitzman ML. 1974. Prices vs. quantities. Rev. Econ. Stud. 41(4):477-91
42. Williams JC, Wright BD. 1991. Storage and Commodity Markets. Cambridge, UK: Cambridge Univ. Press
43. Wood PJ, Jotzo F. 2011. Price floors for emissions trading. Energy Policy 39(3):1746-53
44. Yates AJ, Cronshaw MB. 2001. Pollution permit markets with intertemporal trading and asymmetric information. J. Environ. Econ. Manag. 42(1):104-18