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There is a tendency among policy-makers and industry lobbyists toward "specific", "relative" or "output-based" quotas, i.e., freely distributed to firms proportionally to their output. With a stochastic analytical model, we demonstrate that relative quotas are dominated either by absolute quotas...
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nationwide market for trading and banking sulphur dioxide (SO2) emission allowances. We first develop a model of efficient … banking and select appropriate parameter values. Then we use aggregate data from the first seven years of the Acid Rain … Program to access the temporal efficiency of the observed banking behaviour. We find that banking has been surprisingly …
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Addressing climate change as well as the role of banks in this process requires better measures about the exposures of firms and banks to climate related risks. We usually have data for large, publicly listed firms due to enhanced disclosure requirements. In this paper, we provide first...
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This essay reviews the implementation experience with three main applications of tradable permit systems: air pollution control, water supply and fisheries management. Opening with a brief summary of the theory behind these programs and both the economic and environmental consequences...
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