design, focus on effort or outcome. This paper considers two choices—price versus quantity controls and absolute versus …The uncertainty surrounding both costs and benefits associated with global climate change mitigation creates enormous … hurdles for scientists, stakeholders, and decisionmakers. A key issue is how policy choices balance uncertainty about costs …

achieve the same emissions reductions as an inflexible approach, reduces the increase in electricity price by 60 percent and …

performance standards (averaging) emerge as the likely tool to achieve flexibility in the regulation of existing stationary … electricity price increase. Under the act, multiple stringency criteria are relevant. EPA should evaluate state implementation …

technology choice is endogenous, given that regulation is designed to induce equal expected aggregate emissions. Moreover, either … encourages the most flexibility if and only if abatement costs and the equilibrium permit price have sufficiently strong positive … covariance compared with the variance in the price on the good produced. …

under uncertainty. A tax encourages the most flexible technology if and only if stochastic costs and the equilibrium permit … price have sufficiently strong positive covariance, compared with the variance in consumer demand for the good produced …

Authorities often lack information for efficient regulation of the commons. This paper derives a criterion comparing … prices versus tradable quantities in terms of expected welfare, given uncertainty, optimal policy and endogenous cost … structure. I show that one cannot determine which regulatory instrument that induces the highest expected welfare based on the …

several previous studies of price and quantity controls for climate change that do not adequately capture the dynamic …On efficiency grounds, the economics community has to date tended to emphasize price-based policies to address climate … change -- such as taxes or a “safety-valve” price ceiling for cap-and-trade -— while environmental advocates have sought a …

This paper examines the investment incentives of market-based regulation, with focus on the technology characteristics … aggregate emission allowance supply is completely inelastic. Further, in the presence of uncertainty, elastic emission allowance … in emissions. Last, price elastic supply of emission allowances may increase the volatility in the product market …

moments of the index and the ex post optimal quantity level. When the ratio of these variables’ coefficients of variation …

price effects of the policies hinge partly on the regulatory structure of electricity markets, which varies across the …