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The Effect of Allowance Allocations on Cap-and-Trade System Performance

Hahn, Robert W.; Stavins, Robert N. - Fondazione ENI Enrico Mattei (FEEM) - 2010

We examine an implication of the “Coase Theorem” which has had an important impact both on environmental economics and on public policy in the environmental domain. Under certain conditions, the market equilibrium in a cap-and-trade system will be cost-effective and independent of the...

Persistent link: https://www.econbiz.de/10008465529

Tradable Permits vs Ecological Dumping

Hatzipanayotou, Panos; Antoniou, Fabio; Koundouri, Phoebe - Fondazione ENI Enrico Mattei (FEEM) - 2010

In this paper we examine an alternative policy scenario, where governments allow polluting firms to trade permits in a strategic environmental policy model. We demonstrate, among other things, that with no market power in the permits market, governments of the exporting firms do not have an...

Persistent link: https://www.econbiz.de/10008489587

Relative Quotas: Correct Answer to Uncertainty or Case of Regulatory Capture

Quirion, Philippe - Fondazione ENI Enrico Mattei (FEEM) - 2003

There is a tendency among policy-makers and industry lobbyists toward "specific", "relative" or "output-based" quotas, i.e., freely distributed to firms proportionally to their output. With a stochastic analytical model, we demonstrate that relative quotas are dominated either by absolute quotas...

Persistent link: https://www.econbiz.de/10005423153

Linkage of Tradable Permit Systems in International Climate Policy Architecture

Stavins, Robert N.; Jaffe, Judson - Fondazione ENI Enrico Mattei (FEEM) - 2008

Cap-and-trade systems have emerged as the preferred national and regional instrument for reducing emissions of greenhouse gases throughout the industrialized world, and the Clean Development Mechanism — an international emission-reduction-credit system — has developed a substantial...

Persistent link: https://www.econbiz.de/10005423269

Valuing Tradable CO2 Permits for OECD Countries

Karp, Larry; Liu, Xuemei - Fondazione ENI Enrico Mattei (FEEM) - 1999

We estimate a structural model of OECD countries in which GDP and CO2 emissions are endogenous. We use the estimated model to simulate the price of tradable CO2 permits and the efficiency gains from trade. Our estimated prices are high, relative to previous estimates, and the efficiency gains...

Persistent link: https://www.econbiz.de/10005230830

Matching Markets with Signals

Kushnir, Alexey - Fondazione ENI Enrico Mattei (FEEM) - 2009

A costless signaling mechanism has been proposed as a device to improve welfare in decentralized two-sided matching … information between firms and workers and show that costless signaling is actually harmful in some matching markets. Specifically …, if agents have very similar preferences, signaling lessens the total number of matches and the welfare of firms, as well …

Persistent link: https://www.econbiz.de/10005008014

Harmful Signaling in Matching Markets

Kushnir, Alexey - Fondazione ENI Enrico Mattei (FEEM) - 2010

Some labor markets have recently developed formal signalling mechanisms, e.g. the signalling for interviews in the job market for new Ph.D. economists. We evaluate the effect of such mechanisms on two-sided matching markets by considering a game of incomplete information between firms and...

Persistent link: https://www.econbiz.de/10008674340

Information Channels in Labor Markets. On the Resilience of Referral Hiring

Casella, Alessandra; Hanaki, Nobuyuki - Fondazione ENI Enrico Mattei (FEEM) - 2005

action that can signal their high productivity, and ask whether the possibility of signaling reduces the reliance on the … network. We find that the network is remarkably resilient. To be effective signaling must fulfill two contradictory …

Persistent link: https://www.econbiz.de/10005230869

Bargaining and Delay in Trading Networks

Bedayo, Mikel; Mauleon, Ana; Vannetelbosch, Vincent - Fondazione ENI Enrico Mattei (FEEM) - 2013

We study a model in which heterogeneous agents first form a trading network where link formation is costless. Then, a seller and a buyer are randomly selected among the agents to bargain through a chain of intermediaries. We determine both the trading path and the allocation of the surplus among...

Persistent link: https://www.econbiz.de/10010904918

In Search of Stars: Network Formation among Heterogeneous Agents

Ule, Aljaž; Goeree, Jacob K.; Riedl, Arno - Fondazione ENI Enrico Mattei (FEEM) - 2007

This paper reports results from a laboratory experiment on network formation among heterogeneous agents. The experimental design extends the Bala-Goyal (2000) model of network formation with decay and two-way flow of benefits by allowing for agents with lower linking costs or higher benefits to...

Persistent link: https://www.econbiz.de/10005423187