Rabotyagov, Sergey S.; Feng, Hongli; Kling, Catherine L. - 2006
. Intuitively, we find that the optimal trading ratio and permit cap are set such that there will be more pollution when abatement … are known with certainty, the optimal trading ratio will not necessarily equal the delivery coefficient, nor will it be … optimal for the total permit quantity to equal the given pollution target. Instead, the trading ratio will tend to be larger …