Grandfathering of emission permits creates a rent to incumbent firms since a valuable asset is freely distributed to them. In this paper, we examine the strategic behaviour of polluters that anticipate a change in environmental regulation from a standard-setting to tradable emission permits with...

Both regulation and public disclosure belong in the environmental regulators' arsenal. Strong, clear standards combined with a significant, credible penalty system send the right signals to the regulated community, which responds by lowering pollution emissions. The public disclosure of...

Both regulation and public disclosure belong in the environmental regulators' arsenal. Strong, clear standards combined with a significant, credible penalty system send the right signals to the regulated community, which responds by lowering pollution emissions. The public disclosure of...