In this paper, we examine the design of permit trading programs when the objective is to minimize the cost of achieving an ex ante pollution target, that is, one that is defined in expectation rather than an ex post deterministic value. We consider two potential sources of uncertainty, the...

The optimal pollution permit trading system is examined when the regulator, faced with incomplete information on firms’' abatement costs and delivery coefficients, seeks to minimize expected total abatement costs to meet an ex ante pollution target. Intuitively, we find that the optimal trading...

Over the past several decades, market-based approaches to natural resource management have received increased attention as a means to cost-effectively achieve environmental quality goals. Following on what has been hailed a success for reducing air pollution, water quality trading (WQT) has more...

This paper analyzes potential cost savings to the U.S. agricultural sector associated with applying marketable permit designs for methyl bromide critical use exemptions (CUE), under the phase-out of methyl bromide. A necessary condition for an efficient trading system is heterogeneity among...

The aim of this paper is to quantitatively assess the long run economic impact of Common Agricultural Policy (CAP) abolition, where in particular, we focus on the Spanish economy. To carry out our analysis, we employ the Global Trade Analysis Project (GTAP) computable general equilibrium model...

A positive mathematical programming model was constructed in this study to assess theeffect of three water pricing scenarios on Teboulba’s agricultural production systems.The effects of these scenarios were estimated for three groups of farmers from three irrigated districts. Results show that...

Climate change, the ?boom and bust? cycles of rivers, and altered water resourcemanagement practice have caused significant changes in the spatial distribution of the risk offlooding. Hedonic pricing studies, predominantly for the US, have assessed the spatial incidenceof risk and the associated...

To develop weather insurance, GROUPAMA builds a general model of agronomic crop yielddensity function. This approach is applied for cereal, industrial products, wine and fruits.From the density function, weather risk premium is computed. The wine-producing practicesdisturb our approach of risks....

It is well known from the compliance literature that whenever it costly tomonitor agents' compliance to contract terms, compliance is likely to beincomplete. This paper goes one step further by examining the implications ofincomplete monitoring on agent's sales offers in auctions for...

Tackling the problem of ecosystem services degradation is an important policy challenge. Different types of economic instruments have been employed by conservation agencies to meet this challenge. Notable among them are Payment for Ecosystem Services (PES) schemes that pay private landowners to...