Hasegawa, Makoto; Salant, Stephen - In: Journal of Public Economics 119 (2014) C, pp. 24-34
Virtually every analysis of cap-and-trade programs assumes that firms must surrender permits as they pollute. However, no program, existing or proposed, requires such continual compliance. Some (e.g. the Acid Rain Program limiting SO2 emissions) require compliance once a year; others (e.g. the...