We investigate the eect of cap-and-trade regulation of CO2 on rm prots byperforming an event study of a CO2 price crash in the EU market. We examinereturns for 90 stocks from carbon intensive industries and 600 stocks in the broadEUROSTOXX index. Firms in carbon intensive, or electricity...

This paper analyzes the determinants of alternative automobile fuel regulation and developmentsupport with a particular focus on methanol fuel. We find that embedded interests, bureaucraticreforms, and political circumstances in the Chinese national, provincial, and municipalgovernments have all...

This paper compares emissions trading based on a cap on total emissions (permit trading)and on relative standards per unit of output (credit trading). Two types of market structureare considered: perfect competition and Cournot oligopoly. The effect of combining the twoschemes is also...

This paper measures the extent to which prices exceed marginal costs in the U.S. natural gas distributionmarket during the period 1991-2007. We find large departures from marginal cost pricing in all 50states, with residential and commercial customers facing average markups of over 40%. Based...

We analyze the long-term impacts of large-scale expansion of biofuels on land-usechange, food supply and prices, and the overall economy in various countries or regions using amulti-country, multi-sector global computable general equilibrium model augmented with an explicitland-use module and...

A longstanding theoretical discussion on the merits of prices vs.quantities for regulating emissions under uncertainty exists in environmentalpolicy literature. However, empirical evidence w.r.t. instrumentchoice has not been put forward so far. In particular, verylittle is known about...

This paper explores implications of climate change for fiscal policy by assessing theimpact of large scale extreme weather events on changes in public budgets. We applyalternative measures for large scale extreme weather events and conclude that thebudgetary impact of such events ranges between...

Environmental policy often has to be devised under informational constraints,like uncertainty and asymmetric information. We consider an environmentalpolicy that aims at reducing the welfare losses caused by asymmetricinformation while being sufficiently simple for implementation. Inthis policy,...

We examine an incentive scheme for a group of agents, where all agents are rewarded ifthe group meets its target. If the group does not meet its target, only the agents that meettheir individual target are rewarded. In environmental policy, the EU burden sharingagreement and the UK Climate...

We analyze the following questions associated with flexible outsourcing under partlyimperfect dual domestic labour markets, where high skilled workers participate in firm’s profitvia profit sharing: How does the implementation of profit sharing influence flexibleoutsourcing? What is the...