Akao, Ken-Ichi; Managi, Shunsuke - In: Environmental & Resource Economics 55 (2013) 3, pp. 309-336
It is known that in an intertemporal competitive economy, a tradable permit system may not achieve efficiency without setting appropriate permit interest rates (i.e., rewards for holding permits). To find the rates, however, we need to know in advance the path of efficient permit prices, which...