Böhringer, Christoph; Lange, Andreas - 2003
grandfathering of allowances. Besides having distributional impacts, the choice of the grandfathering scheme may affect efficiency if … optimal grandfathering within a simple two-period model. We find that for (small) open trading systems, where allowance prices … are exogenous, first-best second-period grandfathering schemes must not depend on firm-specific decisions in the first …