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We introduce a "smart" cap and trade system that eliminates the welfare costs of asymmetric information (“uncertainty”). This cap responds endogenously to technology or macroeconomic shocks, relying on the market price of certificates to aggregate information. It allows policy makers to...
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The paper studies the effect of public transport policies on urban pollution. It uses a quantitative equilibrium model … with residential choice and mode choice. Pollution comes from commuting and residential energy use. The model parameters … transport coupled with increasing transit speed affects the equilibrium. In the baseline simulation, total pollution falls by 0 …
Persistent link: https://www.econbiz.de/10011717025
We develop a 2-period emission trading model for a stock pollutant with demand shocks resolving over time. We find precise conditions for efficiency of a stabilization mechanism where cumulative available permits decrease with excess supply in early periods. Our model describes the stabilization...
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regulated due to its historically large contribution to air and water pollution. Our paper contributes to the broader empirical … and enforcement. Our key findings are: (1) prudential regulation limits expansion of plants with high initial pollution …
Persistent link: https://www.econbiz.de/10011906240
"Prices versus quantities" (Weitzman 1974), a hugely influential paper, is widely cited (and taught) in current debates about the best policy to reduce greenhouse gas emissions. The paper's criterion for ranking policies suggests that technological uncertainty favors taxes over cap and trade....
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