MacKenzie, Ian A.; Hanley, Nick; Kornienko, Tatiana - In: Energy Policy 37 (2009) 7, pp. 2798-2806
In this paper we advocate a new initial allocation mechanism for a tradable pollution permit market. We outline a Permit Allocation Contest (PAC) that distributes permits to firms based on their rank relative to other firms. This ranking is achieved by ordering firms based on an observable...