Life cycle analysis (LCA) is the standard approach used to evaluate the greenhouse gas (GHG) benefits of biofuels. However, it is increasingly recognized that LCA results do not account for some impacts including land use changes that have important implications on GHGs. Thus, an alternative...

The optimal pollution permit trading system is examined when the regulator, faced with incomplete information on firms’' abatement costs and delivery coefficients, seeks to minimize expected total abatement costs to meet an ex ante pollution target. Intuitively, we find that the optimal trading...

Delivery coefficients have long been used in economic analysis of policies that seek to address environmental problems like water pollution (Montgomery, 1972). However, the derivation and validity of delivery coefficients have not been examined carefully by empirical analyses. In this study, we...

Examining the value of carbon sequestration in a dynamic model, the authors demonstrate that unless the sequestration is permanent, it is only a fraction of the value of emission abatement. The magnitude of the fraction increases in the duration of sequestration, the natural decay rate of...