Cost effective policies allow minimising the compliance costs associated to reaching a desired environmental quality target. In this paper a conceptual model has been developed to examine the compliance costs under an intra-plant emission trading system for a non-uniformly mixed assimilative...

The use of cap-and-trade to regulate air pollution promises to achieve environmental goals at lower cost than traditional prescriptive approaches. Cap-and-trade has been applied to various air pollutants including sulphur dioxide, nitrogen oxides and volatile organic compounds in the United...

A comprehensive emissions trading scheme (ETS) is Australia’s principal climate change policy instrument. There are undoubtedly benefits of full ETS coverage. However, if emissions that cannot be affordably, reasonably and accurately measured are included, these must be balanced against...

Australia is currently developing a carbon emissions trading program. The Garnaut report recommendations include options for emissions trajectories, coverage, permit allocation, inter-temporality, governance and compliance. This paper reports the results of a series of economic experiments in...

Under the New Zealand Emissions Trading Scheme, forests planted on or after 1st January 1990 earn carbon credits. These credits have to be repaid when the forest is harvested. This paper analyses the effects of this scheme on the value of bareland on which radiata pine is to be planted. A real...

This study examines the potential success of the futures contract in SO2 Emissions Allowances. Factors affecting the success of the futures contract are presented including the uncertainties of air pollution and public utility regulation, emission control technology, electricity demand, and...

The composite market design is a proposal for a Transferable Discharge Permit (TDP) system which specifically includes agricultural non-point source (NPS) dischargers and addresses both property rights and transaction cost problems. The first step to implementation of a composite market scheme...

One argument in favor of market based pollution control policies is sometimes exaggerated, and a different argument is usually ignored. Regardless of whether investment is fixed or endogenous, market based policies might lead to a higher or lower equilibrium abatement compared to the level under...