Jouvet, Pierre-André; Etner, Johanna - EconomiX, Université Paris Ouest-Nanterre la Défense … - 2006
The well known economic advantage of tradable permits over command and control obviously vanish if firms do not trade … in tradable permits. This article proposes to give optimal risk sharing rules in order to respond to policy risk. We show … how banking of tradable permits can be used as a tool of policy risk control. …