. Using the example of coal-fired power plants, our numerical exercise examines the impacts of increasing a hypothetical …

introduction of the Acid Rain Program in the U.S. as a case study. The theory predicts that owners of coal deposits, expecting … implementation; moreover, the incentive to increase supply would be stronger for owners of high-sulfur coal. This would, all else … equal, induce an increase in sulfur dioxide emissions. Using data on prices, heat input and sulfur content of coal delivered …

modest decrease for coal generators. These findings imply that an updating allocations confers a modest but meaningful …