This paper reviews and develops a theoretical and empirical representation of economic incentives for the implementation of pollution control strategies. A number of alternative available economic instruments may be thought of which, if applied internationally, could encourage implementation of...

Zu Beginn des Jahres 2005 startete das europäische Emissionshandelssystem. Die vorliegende Studie beschäftigt sich mit den Auswirkungen des Emissionshandelssystems auf die deutsche Energiewirtschaft. Dargestellt und analysiert wird zunächst die europäische Emissionshandelsrichtlinie...

According to the Coase theorem, if property rights to pollute are clearly established and emissions permit markets nearly eliminate transaction costs, the permit market equilibrium will be independent of how the permits are initially distributed among …firms. Testing the independence of...

There are two principal choices of the baseline from which emissions trading may take place: 1) emission reduction credits (ERCs) in which the baseline is existing regulations which are often activity-based; and 2) cap-and-trade which specified the total allowable emissions. This paper examines...

Recent benefit-cost studies have shown that the marginal benefits from controlling conventional air emissions from coal-fired electric utility power plants in the US exceed marginal costs of pollution control. Moreover existing and proposed regulations ignore harm caused by the emission of...

Policies to cap emissions of carbon dioxide (CO2), such as the recently announced agreement among seven northeastern states, are expected to have important effects on the electricity industry and on the market value of firms that own electricity generation assets. The economics literature finds...