Transaction costs and tradeable permits
Article Abstract:
A research effort analyzes the effects of transaction costs on the performance of markets for pollution control. Market-based reforms on environmental policy are currently focused on tradeable-permit systems because such systems have significant advantages over conventional pollution control strategies. However, cost-effectiveness claims are usually exaggerated. Transaction costs reduce trading levels and increase abatement costs. Equilibrium permit allocations and aggregate control costs are, in certain instances, sensitive to the initial permit distributions.
Publication Name: Journal of Environmental Economics and Management
Subject: Environmental services industry
ISSN: 0095-0696
Year: 1995
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Correlated uncertainty and policy instrument choice
Article Abstract:
Environmental economists have overlooked the fact that benefit uncertainty expressed through the covariance term plays a role in identifying the efficient policy instrument in the presence of concurrent uncertainty in marginal benefits and marginal costs, and certain statistical dependence between them. However, in the presence of plausible values of the pertinent parameters, the traditional identification of a price instrument for environmental protection can be reversed to support a quantity instrument. The opposite reversal is less likely to happen.
Publication Name: Journal of Environmental Economics and Management
Subject: Environmental services industry
ISSN: 0095-0696
Year: 1996
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Dynamic incentives of environmental regulations:the effects of alternative policy instruments on technology diffusion
Article Abstract:
A study is presented in which a model is constructed for an empirical comparison of the effects of alternative instruments of environmental policy on the spread of new technology. Specific attention is given to the diffusion of thermal installation in the construction of new housing.
Publication Name: Journal of Environmental Economics and Management
Subject: Environmental services industry
ISSN: 0095-0696
Year: 1995
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