Fell, Harrison; Burtraw, Dallas; Morgenstern, Richard D.; … - In: Journal of Environmental Economics and Management 64 (2012) 2, pp. 183-198
We use a stochastic dynamic framework to compare price collars (price ceilings and floors) in a cap-and-trade system with uncertainty in the level of baseline emissions and costs. We consider soft collars, which provide limited volume of additional emission allowances (a reserve) at the price...