This paper analyzes the eects of the New Source Review (NSR) environmental regula-tions on coal-red electric power plants. Regulations that grew out of the Clean Air Actof 1970 required new electric generating plants to install costly pollution control equipmentbut exempted existing plants....

This study investigates the dynamic efficiency of an emissionregulation regime where companies competitively pay for emissionlicences. We embed the emission licence market in a Cournotmodel where the price of emission licences is subject to strategictradeoff between licences and abatement...

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...

In this paper we study the short term price behavior of December 2008 future prices for EU emissionallowances. We model returns and volatility dynamics of this price showing that a standard ARMA-GARCHframework is not adequate and that the gaussianity assumption is rejected due to the occurrence...

Many researchers have found game theory a useful method for analyzing internationalenvironmental problems. However, game theory has been criticized for being too theoretical,abstracting from too many practical problems and being based on very specific assumptions.This article tries to qualify...

This paper develops a general equilibrium model to measure welfare eects of taxesfor correcting environmental externalities caused by domestic trade, focusing on externalities that arise through exports. Externalities from exports come from a number ofsources. Domestically owned ships, planes,...

We analyze the design of optimal environmental policy when environmentaldamage is uncertain and investments in abatement technologies are irreversible. Weassume that the investment in the new abatement technology can be used for twoperiods and that the true extent of environmental damage will...

We analyze the effect of collective action vs green/environmentally aware consumers onambient environmental quality and market equilibrium. We consider a model with twotypes of consumers who differ in their willingness-to-pay for a good available in twodifferent environmental qualities, and two...

This paper shows that although small or nancially constrained environmentalistgroups may be in a weak position, relative to polluting industries, in the directcompetition for political inuence, they can compete indirectly through changingpublic preferences over environmental quality. However, in...

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...