Design Issues

(Updated in 10/08)

TRANSACTION COSTS

Andersson, F. (1997). "Small Pollution Markets: Tradable Permits versus Revelation Mechanisms." Journal of Environmental Economics and Management 32(1): 38-50.

Burtraw, D., K. W. Harrison, et al. (1998). "Improving Efficiency in Bilateral Emission Trading." Environmental and Resource Economics 11(1): 19-33.

Cason, T. N. and L. Gangadharan (1998). "An Experimental Study of Electronic Bulletin Board Trading for Emission Permits." Journal of Regulatory Economics 14(1): 55-73.

Cason, T. N. and L. Gangadharan (2003). "Transactions Costs in Tradable Permit Markets: An Experimental Study of Pollution Market Designs." Journal of Regulatory Economics 23(2): 145-165.

Gangadharan, L. (2000). "Transactions Costs in Pollution Markets: An Empirical Study." Land Economics 76(4): 601-614.

Netusil, N. R. and J. B. Braden (2001). "Transaction Costs and Sequential Bargaining in Transferable Discharge Permit Markets." Journal of Environmental Management 61(3): 253-262.

Stavins, R. N. (1995). "Transaction Costs and Tradable Permits." Journal of Environmental Economics and Management 29(2): 133-148.

Woerdman, E. (2001). "Emissions Trading and Transaction Costs: Analyzing the Flaws in the Discussion." Ecological Economics 38(2): 293-304.

MARKET POWER

Böhringer, C., Löschel, A. (2003), ?Market Power and Hot Air in International Emissions Trading: The Impacts of U.S. Withdrawal from Kyoto-Protocol?, Applied Economics 35 (6), 651-664

Böhringer, C., Moslener, U., Sturm, B. (2007), ?Hot Air for Sale: A Quantitative Assessment of Russia's Near-Term Climate Policy Options", Environmental and Resource Economics, 36(4), 545-572.

Bonacina, M. and F. GullI (2007). "Electricity pricing under "carbon emissions trading": A dominant firm with competitive fringe model." Energy Policy 35(8): 4200-4220.

Carlen, B. (2003). "Market Power in International Carbon Emissions Trading: A Laboratory Test." Energy Journal 24(3): 1-26.

Cason, T. N., L. Gangadharan, et al. (2003). "Market power in tradable emission markets: a laboratory testbed for emission trading in Port Phillip Bay, Victoria." Ecological Economics 46(3): 469-491.

Chavez, C. A. and J. K. Stranlund (2003). "Enforcing transferable permit systems in the presence of market power." Environ Resour Econ 25(1): 65-78.

Eshel, D. M. D. (2005). "Optimal Allocation of Tradable Pollution Rights and Market Structures." Journal of Regulatory Economics 28(2): 205-223.

Fullerton, D. and G. E. Metcalf (2002). "Cap and Trade Policies in the Presence of Monopoly and Distortionary Taxation." Resource and Energy Economics 24(4): 327-347.

Godby, R. (2000). "Market Power and Emissions Trading: Theory and Laboratory Results." Pacific Economics Review 5(3): 349-363.

Godby, R. (2002). "Market Power in Laboratory Emission Permit Markets." Environmental & Resource Economics 23(3): 279-318.

Godby, R. W., S. Mestelman, et al. (1999). Experimental tests of market power in emission trading markets. Environmental Regulation and Market Power. E. Petrakis, E. S. Sartzetakis and A. Xepapadeas. Cheltenham, UK, Edward Elgar Publishing: 67-94.

Hagem, C. and O. Maestad (2006). "Russian Exports of Emission Permits uner the Kyoto Protocol: the Interplay with Non-Competitive Fuel Markets." Resource and Energy Economics 28(1): 54-73.

Hagem, C. and H. Westkog (1998). "The Design of a Dynamic Tradeable Quota Sytem under Market Imperfections." Journal of Environmental Economics and Management 36(1): 89-107.

Hahn, R. W. (1984). "Market Power and Transferable Property Rights." Quarterly Journal of Economics 99(4): 753-765.

Innes, R., C. Kling, et al. (1991). "Emission Permits Under Monopoly." Natural Resource Modeling 5(3): 321-43.

Kato, K. (2006). "Can allowing to trade permits enhance welfare in mixed oligopoly?" Journal of Economics 88(3): 263-283.

Kuik, O. and M. Mulder (2004). "Emissions trading and competitiveness: pros and cons of relative and absolute schemes." Energy Policy 32(6): 737-745.

Long, N. and A. Soubeyran. (2000) "Emissions Trading and Asymmetric Oligopoly." Econ. Prevision (143-144): 83-89.

Maeda, A. (2003). "The Emergence of Market Power in Emission Rights Markets: The Role of Initial Permit Distribution." Journal of Regulatory Economics 24(3): 293-314.

Malik, A. (2002). "Further Results on Permit Markets and Cheating." Journal of Environmental Economics and Management 44(3): 371-390.

Malik, A.S., "Further results on permit markets with market power and cheating" Journal of Environmental Economics and Management 44(3) (2002): 371-390.

Misiolek, W. S. and H. W. Elder (1989). "Exclusionary Manipulation of Markets for Pollution Rights." Journal of Environmental Economics and Management 16(2): 156-66.

Sartzetakis, E. S. (1997). "Raising Rivals' Costs Strategies via Emission Permits Markets." Review of Industrial Organization 12(5-6): 751-765.

Sartzetakis, E. S. (1997). "Tradeable Emission Permits Regulations in the Presences of Imperfectly Competitive Product Markets: Welfare Implications." Environmental and Resource Economics 9(1): 65-81.

Sartzetakis, E. S. and D. G. McFetridge (1999). Emissions permits trading and market structure. Environmental Regulation and Market Power. E. Petrakis, E. S. Sartzetakis and A. Xepapadeas. Cheltenham, UK, Edward Elgar Publishing: 47-66.

Van Egteren, H. and M. Weber (1996). "Marketable Permits, Market Power and Cheating." Journal of Environmental Economics and Management 30(2): 161-173.

von der Fehr, N.-h. (1993). "Tradable Emission Rights and Strategic Interaction." Environmental and Resource Economics 3: 129-151.

Westkog, H. (1996). "Market Power in a System of Tradable CO2 Quotas." The Energy Journal 17: 85-103.

TECHNOLOGY

Barreto, L. and S. Kypreos (2004). "Emissions Trading and Technology Deployment in an Energy-systems "Bottom-up" Model with Technology Learning." European Journal of Operational Research 158(1): 243-261.

Bruneau, J. F. (2004). "A Note on Permits, Standards, and Technological Innovation." Journal of Environmental Economics and Management 48(3): 1192-1199.

Devlin, R. A. and R.Q. Grafton (1994) "Tradeable Permits, Missing Markets, and Technology" Environmental and Resource Economics 4: 171-186.

Driesen, David. Does Emissions Trading Encourage Innovation?, 33 ENVT'L L. REP. (Envtl. L. Inst.) 10094 (2003).

Eriksson, M. and L. Vamling (2006). "Heat pumps and tradable emission permits: On the carbon dioxide emissions of technologies that cross a tradable emission market boundary." Energy Conversion and Management 47(20): 3510-3518.

Fischer, C. (2005). Technical innovation and design choices for emissions trading and other climate policies. Emissions Trading for Climate Policy. B. Hansjürgens. New York, Cambridge University Press:

Fischer, C. (2008). "Emissions pricing, spillovers, and public investment in environmentally friendly technologies." Energy Economics 30(2): 487-502

Insley, M., C. (2003). "On the Option to Invest in Pollution Control under a Regime of Tradable Emissions Allowances." Canadian Journal of Economics Revue Canadienne D Economique 36: 860-883.

Jaffe, A. B. and R. N. Stavins (1995). "Dynamic Incentives of Environmental Regulations: The Effects of Alternative Policy Instruments on Technology Diffusion." Journal of Environmental Economics and Management 29(3 Suppl. Part 2): S43-S63.

Jaffe, Adam B., Richard G. Newell, Robert N. Stavins. 2003. Technological Change and the Environment. Chapter 11 in Handbook of Environmental Economics, Volume 1, K.-G. Mäler and J.R. Vincent, eds, pp. 461-516, Elsevier Science, Amsterdam. <http://www.rff.org/~newell/maler11.pdf>

Jung, C. H., K. Krutilla, et al. (1996). "Incentives for Advanced Pollution Abatement Technology at the Industry Level: An Evaluation of Policy Alternatives." Journal of Environmental Economics and Management 30(1): 95-111.

Kaneko, S., A. Yonamine, et al. (2006). "Technology Choice and CDM Projects in China: Case study of a Small steel Company in Shandong Province." Energy Policy 34(10): 1139-1151.

Kerr, S. and R. G. Newell (2003). "Policy-Induced Technology Adoption: Evidence from the U.S. Lead Phasedown." Journal of Industrial Economics 51: 317-343.

Laffont, J.-J. and J. Tirole (1996). "Pollution Permits and Environmental Innovation." Journal of Public Economics 62(1-2): 127-140.

Loeb, A.P. and K.A. Bailey, "Identifying the Linkage: Does Emissions Trading Accelerate Technology Innovation? A Case Study on Acid Rain," presented at the Second North American Conference and Exhibition "New Business Opportunities with Clean Air Technologies", Orlando, Florida, November 21, 1996.

Maleug, D. A. (1989). "Emission Trading and the Incentive to Adopt New Pollution Abatement Technology." Journal of Environmental Economics and Management 16(1): 52-57.

Milliman, S. R. and R. Prince (1989). "Firm Incentives to Promote Technological Change in Pollution Control." Journal of Environmental Economics and Management 17(3): 247-265.

Montero, J.-P. (2002). "Permits, Standards, and Technology Innovation." Journal of Environmental Economics and Management 44(1): 23-44.

Popp, David, "Pollution Control Innovations and the Clean Air Act of 1990" Journal of Policy Analysis and Management 22, No. 4 (2003): 641-660.

Taylor, M. R., E. S. Rubin, et al. (2005). "Regulation as the Mother of Invention: The Case of SO₂ Control." Law & Policy 27(2): 348-378.

UNCERTAINTY AND RISK

Ben-David, S., D. Brookshire, et al. (2000). "Attitudes Toward Risk and Compliance in Emission Permit Markets." Land Economics 76(4): 590-600.

Carlson, D. A. and A. M. Sholtz (1994). "Designing Pollution Market Instruments - A Case of Uncertainty." Contemporary Economic Policy 12(4): 114-125.

Chesney M. and Taschini L. (2008), "The Endogenous Price Dynamics of the Emission Allowances and an Application to CO2 Option Pricing", Swiss Finance Institute Research Paper No. 08-02, University of Zurich - Swiss Banking Institute (ISB). Available at: : http://ssrn.com/author=605723

Feng, H. L. and J. Zhao (2006). "Alternative Intertemporal Permit Trading Regimes with Stochastic Abatement Costs." Resource and Energy Economics 28(1): 24-40.

Godby, R. W., S. Mestelman, et al. (1997). "Emissions Trading with Shares and Coupons When Control over Discharges is Uncertain." Journal of Environmental Economics and Management 32(3): 359-381.

Hennessy, D. A. and J. Roosen (1999). "Stochastic Pollution, Permits and Merger Incentives." Journal of Environmental Economics and Management 37(3): 211-232.

Montero, J.-P. (1998). "Marketable Pollution Permits with Uncertainty and Transactions Costs." Resource and Energy Economics 20(1): 27-50.

Mrozek, J. R. and A. G. Keeler (2004). "Pooling of Uncertainty: Enforcing Tradable Permits Regulation when Emissions are Stochastic." Environmental & Resource Economics 29(4): 459-481.

Newell, R. G. and W. A. Pizer (2003). "Regulating stock externalities under uncertainty." Journal of Environmental Economics and Management 45(2): 416-432.

Quirion, P. (2005). "Does uncertainty justify intensity emission caps?" Resource and Energy Economics 27(4): 343-353.

Stranlund, J. K. (2008). "Risk aversion and compliance in markets for pollution control." Journal of Environmental Management 88(2): 203-210.

Weitzman, M. (1974). "Prices vs. Quantities." Review of Economic Studies 41: 447-491.

Wirl, F. (2006). "Consequences of irreversibilities on optimal intertemporal CO2 emission policies under uncertainty." Resource and Energy Economics 28(2): 105-123.

GENERAL DESIGN ISSUES

Austin, S. A. (1996). "Tradable Emissions Programs: Implications Under the Takings Clause." Environmental Law 26(1): 323-353.

Baker, K. and M. McKee (2000). "Increasingly Contested Property Rights and Trading in Environmental Amenities." Land Economics 76(3): 333-344.

Beets, S. D. (2001). "Accounting for Pollution: The Effects of Emissions Trading". Advances in Accountability : Regulation, Research, Gender and Justice. C. L. Lehman. New York, JAI Press. 8: 21-59.

Bell, R. G. (2006). "Market Failure." The Environmental Forum 23(2): 28-33.

Bohm, P. and B. Carlén (2002). "A Cost-Effective Appraoch to Attracting Low -income Countries to International Emissions Trading: Theory and Experiments." Environmental & Resource Economics 23(2): 187-211.

Boom, J. T. and G. T. Svendsen (2000). "The Political Economy of International Emissions Trading Scheme Choice: A Theoretical Analysis." Journal of Institutional and Theoretical Economics - Zeitschrift Fur Die Gesamte Staatswissenschaft 156(4): 548-566.

Boots, M. (2003). "Green Certificates and Carbon Trading in the Netherlands." Energy Policy 31(1): 43-50.

Buckley, N. J., S. Mestelman, et al. (2006). "Implications of alternative emission trading plans: Experimental evidence." Pacific Economic Review 11(2): 149-166.

Colby, B. G. (2000). "Cap and Trade Policy Challenges: A Tale of Three Markets." Land Economics 76(4): 638-658.

Dewees, D. N. (2001). "Emissions Trading: ERCs or Allowances?" Land Economics 77(4): 513-526.

Dudek, D. J., J. Goffman, et al. (1997). Emissions Trading in Nonattainment Areas: Potential, Requirements, and Existing Programs. Market-Based Approaches to Environmental Policy: Regulatory Innovations to the Fore. R. F. Kosobud and J. M. Zimmerman. New York, Van Nostrand Reinhold: 151-186.

Dutschke, M. and A. Michaelowa (2006). "Development Assistance and the CDM - How to Interpret 'Financial Additionality'." Environment and Development Economics 11: 235-246.

Ellerman, A. D. (2002). "Designing a Tradable Permit System to Control SO2 Emissions in China: Principles and Practice." Energy Journal 23(2): 1-26.

Endres, A. (1986). "Charges, Permits and Pollutant Interactions." Eastern Economic Journal 12(3): 327-36.

Ermoliev, Y., M. Michalevich, et al. (2000). "Markets for Tradeable Emission and Ambient Permits: A Dynamic Approach." Environmental and Resource Economics 15(1): 39-56.

Farrell, A. E. and M. G. Morgan (2003). Multilateral Emission Trading: Heterogeneity in Domestic and International Common-Pool Resource Management. The Commons in the New Millenium: Challenges and Adaptation. N. Dolsak and E. Ostrom. Cambridge, MA, The MIT Press: 169-217.

Farrow, S. "The Duality of Taxes and Tradable Permits: A Survey with Applications to Central and Eastern Europe" Environment and Development, Vol. 4(October, 1999): 519-535.

Fischer, C. (2005). "Project-based mechanisms for emissions reductions: balancing trade-offs with baselines." Energy Policy 33(14): 1807-1823.

Fischer, C. (2006). "Multinational Taxation and International Emissions Trading." Resource and Energy Economics 28(2): 139-159.

Fristrup, P. (2003). "Some Challenges Related to Introducing Tradable Green Certificates." Energy Policy 31(1): 15-19.

Gersbach, H. and A. Glazer (1999). "Markets and Regulatory Hold-Up Problems." Journal of Environmental Economics and Management 37(2): 151-164.

Grafton, R. Q. "Governance of the Commons: A Role for the State?" Land Economics 76(4): 504 -17.

Grafton , R. Quentin and Rose Anne Devlin "Paying for Pollution: Permits and Charges" Scandinavian Journal of Economics 98(2): 275-288, 1996.  

Hahn, R. W. (1983). Designing Markets in Transferable Property Rights: A Practitioner's Guide. Buying a Better Environment: Cost-Effective Regulation Through Permit Trading. E. F. Joeres and M. H. David. Madison, Wis., University of Wisconsin Press: 83-97.

Hahn, R. W. (1986). "Trade-offs in Designing Markets With Multiple Objectives." Journal of Environmental Economics and Management 13(1): 1-12.

Hahn, R. W. (1990). "Regulatory Constraints on Environmental Markets." Journal of Public Economics 42(2): 149-75.

Hahn, R. W. and R. G. Noll (1982). "Barriers to Implementing Tradable Air Pollution Permits: Problems of Regulatory Interactions." Yale Journal of Regulation 1(1): 63-91.

Hahn, R. W. and R. G. Noll (1982). Designing a Market for Tradable Emission Permits. Reform of Environmental Regulation. W. A. Magat. Cambridge, Mass, Ballinger: 119-146.

Hansjurgens, Ralf Anters, eds. (2008). Emissions Trading: Institutional Design, Decision Making and Corporate Strategies ((New York: Springer).

Hasselknippe, H. (2003). "Systems for carbon trading: an overview." Climate Policy 3(Supplement 2): S43-S57.

Herberg, H. (2003). Marketable emission permits and the pattern of foreign trade: A Heckscher-Ohlin approach. Challenges to the World Economy. R. Pethig and M. Rauscher: 309-323.

Hoel, M. and L. Karp (2002). "Taxes versus Quotas for a Stock Pollutant." Resource and Energy Economics 24(4): 367-384.

Holmes, K. J. and R. M. Friedman (2000). "Design alternatives for a domestic carbon trading scheme in the United States." Global Environmental Change - Human and Policy Dimensions 10(4): 273-288.

Hung, N. M. and E. S. Sartzetakis (1998). “Cross-Industry Emission Permits Trading.” Journal of Regulatory Economics 13(1): 37-46.

Jouvet, P. A., P. Michel, et al. (2005). "Optimal growth with pollution: how to use pollution permits?" Journal of Economic Dynamics & Control 29(9): 1597-1609.

Kamieniecki, S., et al.(1999). "Forming Partnerships in Environmental Policy - The Business of Emissions Trading in Clean Air Management" American Behavioral Scientist 43(1): 107-123.

King, D. (2004). "Trade-based Carbon Sequestration Accounting." Environmental Management 33(4): 59-571.

Kolk, A. and V. Hoffmann (2007). "Business, Climate Change and Emissions Trading:Taking Stock and Looking Ahead." European Management Journal 25(6): 411-414.

Konishi, H. (2005). "Intergovernmental versus Intersource Emissions Trading When Firms are Noncompliant." Journal of Environmental Economics and Management 49(2): 235-261.

Kosobud, R. F. and J. M. Zimmerman (1997). A Deliberative Opinion Poll of Expert Views on Environmental Markets. Market-Based Approaches to Environmental Policy: Regulatory Innovations to the Fore. R. F. Kosobud and J. M. Zimmerman. New York, Van Nostrand Reinhold: 199-210.

Krysiak, F. C. (2008). "Ex-post efficient permit markets: a detailed analysis." Environmental & Resource Economics 39(4): 397-410.

Kuik, O. and M. Mulder (2004). "Emissions trading and competitiveness: pros and cons of relative and absolute schemes." Energy Policy 32(6): 737-745.

Ledyard, J. O. and K. Szakaly-Moore (1994). "Designing Organizations for Trading Pollution Rights." Journal of Economic Behavior and Organization 25: 167-196.

Lence, B. J. (1991). "Weighted Sum Transferable Discharge Permit Programs for Control of Multiple Pollutants." Water Resources Research 27(12): 3019-27.

Lemming, J. (2003). "Financial Risks for Green Electricity Investors and Producers in a Tradable Green Certificate Market." Energy Policy 31(1): 21-32.

Lewis, Tracy R. and David E. M. Sappington (1995). "Using Markets to Allocate Pollution Permits and Other Scarce Resource Rights Under Limited Information." Journal of Public Economics 57(3): 431-455.

Lutter, R. and J. F. Shogren (2002). "Tradable Permit Tariffs: How Local Air Pollution Affects Carbon Emissions Permit Trading." Land Economics 78(2): 159-170.

Lyon, R. M. (1982). "Auctions and Alternative Procedures for Allocating Pollution Rights." Land Economics 58(1): 16-32.

Lyon, R. M. (1986). "Equilibrium Properties of Auctions and Alternative Procedures for Allocation Transferable Permits." Journal of Environmental Economics and Management 13(2): 129-52.

Lyon, R. M. (1990). "Regulating Bureaucratic Polluters." Public Finance Quarterly 2: 198-220.

Malueg, D. A. and A. J. Yates (2006). "Citizen Participation in Pollution Permit Markets." Journal of Environmental Economics and Management 51(2): 205-217.

Marakovits, D. and T. J. Considine (1996). "An Empirical Analysis of Exposure-Based Regulation to Abate Air Pollution." Journal of Environmental Economics and Management 31(3): 337-351.

Mestelman, S. and R. A. Muller (1998). Instrument Choice for Emissions Permit Trading: Designing a Laboratory Environment. Designing Institutions For Environmental and Resource Management. E. T. Loehman and D. M. Kilgour. Northampton, Edward Elgar Publishing: 301-320.

Montero, J. P. (2000). "Optimal Design of a Phase-in Emissions Trading Program." Journal of Public Economics 75(2): 273-291.

Montero, J. P. (2001). "Multipollutant Markets." Rand Journal of Economics 32(4): 762-774.

Morgenstern R. (2005). Design issues of a domestic carbon emissions trading system in the USA. Emissions Trading for Climate Policy. B. Hansjürgens. New York, Cambridge University Press: 114-132.

Morthorst, P. E. (2001). "Interactions of a Tradable Green Certificate Market with a Tradable Permits Market." Energy Policy 29(5): 345-353.

Muller, R. A. (1994). "Emissions Trading with Shares and Coupons - A Laboratory Experiment." Energy Journal 15(2): 185-211.

Nash, J. R. and R. L. Revesz (2001). "Markets and geography: Designing marketable permit schemes to control local and regional pollutants." Ecol Law Quart 28(3): 569-661.

National Academy of Public Administration (2000). Environment.gov: Transforming Environmental Protection for the 21st Century. Washington, DC, National Academy of Public Administration.

Newell, Richard G., William A, Pizer and Jiangfeng Zhang. 2003. Managing Permit Markets to Stabilize Prices. Resources for the Future Discussion Paper 03-34, Washington, DC.Forthcoming Environment and Resource Economics. <http://www.rff.org/~newell/0334Final.pdf>

Nobel, C. E., E. C. McDonald Buller, et al. (2001). "Accounting for Spatial Variation of Ozone Productivity in NOx Emission Trading." Environmental Science & Technology 35(22): 4397-4407.

Noll, R. G. (1982). "Implementing Marketable Emissions Permits." American Economics Review 72(2): 120-124.

Oates, W. E., P. R. Portney, et al. (1989). "The Net Benefits of Incentive-Based Regulation: The Case of Environmental Standard Setting." American Economic Review 79(5): 1233-1242.

OECD (1992). Climate Change: Designing a Tradable Permit System. Paris, OECD.

Onuma, A. (2000). "Environmental Asset Market Failure, Income Transfer, and a Reform of the Tradeable Emission Permit System." Environ. Econ. Pol. Stud. 3(1): 21-28.

Parry, I. W. H. (2004). "Are emissions permits regressive?" Journal of Environmental Economics and Management 47(2): 364-387.

Pezzey, J. C. V., F. Jotzo, et al. (2008). "Fiddling while carbon burns: why climate policy needs pervasive emission pricing as well as technology promotion." Australian Journal of Agricultural and Resource Economics 52(1): 97-110.

Rodriguez, F. (2000). "On the use of exchange rates as trading rules in a bilateral system of transferable discharge permits." Environmental & Resource Economics 15(4): 379-395.

Rosendahl, K. E. (2008). "Incentives and prices in an emissions trading scheme with updating." Journal of Environmental Economics and Management 56(1): 69-82.

Roumasset, J. A. and K. R. Smith (1987). Environmental Policy and Public Health: Regulating Air Pollution with Exposure Trading. East-West Center, Honolulu, Hawaii 96848, the Environment and Policy Institute.

Roumasset, J. A. and K. R. Smith (1990). "Exposure Trading: An Approach to More Efficient Air Pollution Control." Journal of Environmental Economics and Management 18(3): 276-91.

Russell, C. S. (1981). "Controlled Trading of Pollution Permits." Environmental Science and Technology 15(1): 24-28.

Schaltegger, S. and T. Thomas (1996). "Pollution Added Credit Trading (PACT): New Dimensions in Emissions Trading." Ecological Economics 19(1): 35-53.

Schwarze, R. and P. Zapfel (2000). "Sulfur Allowance Trading and the Regional Clean Air Incentives market: A comparative Design Analysis of Two Major Cap-and-Trade Permit Programs?" Environmental and Resource Economics 17(3): 279-298.

Shipworth, D. (2003). "Hitting emissions targets with (statistical) confidence in multi-instrument Emissions Trading Schemes." Climate Policy 3(Supplement 2): S75-S87.

Smith, S. and A. J. Yates (2003). "Optimal Pollution Permit Endowments in Markets with Endogenous Emissions." Journal of Environmental Economics and Management 46(3): 425-446.

Soleille, S. (2006). "Greenhouse Gas Emission Trading Schemes: A New Tool for the Environmental Regulator's Kit." Energy Policy 34(13): 1473-1477.

Span, H. A. (2000). "Of TEAs and takings: Compensation guarantees for confiscated tradeable environmental allowances." Yale Law Journal 109(8): 1983-2017.

Søberg, M. (2000). "Price Expectations and International Quota Trading: An Experimental Evaluation." Environmental and Resource Economics 17(3): 259-277.

Solomon, B. D. (1999). "New Directions in Emissions Trading: the Potential Power of New Institutional Economics." Ecological Economics 30(3): 371-387.

Span, H. A. (2000). "Of TEAs and Takings: Compensation Guarantees for Confiscated Tradeable Environmental Allowances." Yale Law Journal 109(8): 1983-2017.

Stavins, R. N. (2005). Implications of the US experience with market-based environment strategies for future climate policy. Emissions Trading for Climate Policy. B. Hansjürgens. New York, Cambridge University Press: 63-77.

Svendsen, G. T. (1999). "Interest Groups Prefer Emission Trading: A New Perspective." Public Choice 101(1-2): 109-28.

Swart, R. (1992). Greenhouse Gas Emissions Trading: Defining the Commodity. Climate Change: Designing a Tradable Permit System. T. Jones and J. Corfee-Morlot. Paris, Organization for Economic Co-operation and Development Publication: 137-166.

Swift, B. (2001). "How Environmental Laws Work: An Analysis of the Utility Sector's Response to Regulation of Nitrogen Oxides and Sulfur Dioxide Under the Clean Air Act." Tulane Environmental Law Journal 14(2): 309-425.

Thompson, D. B. (2000). "Political Obstacles to the Implementation of Emissions Markets: Lessons from RECLAIM." Natural Resources Journal 40(3).

Tietenberg, T. (1994). Implementation Issues for Global Tradable Permits. International Environmental Economics: Theories, Models, and Applications to Climate Change, International Trade and Acidification. E. C. V. Ierland. New York, Elsevier: 119-149.

Tietenberg, T. (1995). Design Lessons from Existing Air Pollution Control Systems: The United States. Property Rights in a Social and Ecological Context: Case Studies and Design Applications. S. Hanna and M. Munasinghe. Washington, DC, The World Bank.

Tietenberg, T. and D. Victor (1994). Possible Administrative Structures and Procedures. Combating Global Warming: Possible Rules Regulations and Administrative Arrangements for a Global Market In CO2 Emission Entitlements. United Nations Conference on Trade and Development. New York, United Nations: 1-60.

Tietenberg, T. H. (1974). "The Design of Property Rights for Air Pollution Control." Public Policy 27(3): 275-292.

Tietenberg, Tom. (2000) "Tradable Permit Approaches to Pollution Control: Faustian Bargain or Paradise Regained?" in M. D. Kaplowitz ed. Property Rights, Economics and the Environment, (Stamford, CT: JAI Press Inc., 2000): 175-199.

Tolley, G. S. and B. K. Edwards (1997). Slippage Factors in Emissions Trading. Market-Based Approaches to Environmental Policy: Regulatory Innovations to the Fore. R. F. Kosobud and J. M. Zimmerman. New York, Van Nostrand Reinhold: 187-198.

Trexler, M. C. and L. H. Kosloff (2006). "Selling Carbon Neutrality." The Environmental Forum 23(2): 34-39.

Tripp, J. T. B. and D. J. Dudek (1989). "Institutional Guidelines for Designing Successful Transferable Rights Programs." Yale Journal of Regulation 6: 369-391.

Unold, W. and T. Requate (2001). "Pollution Control by Options Trading." Economic Letters 73(3): 353-358.

Victor, D. G. and J. C. House (2006). "BP's emissions trading system." Energy Policy 34(15): 2100-2112.

Wiener, J. B. (1999). "Global Environmental Regulation: Instrument Choice in Legal Context." Yale Law Journal 108(4): 677-800.

Wiener, J. B. (1999). "On the Political Economy of Global Environmental Regulation." The Georgetown Law Journal 87(3): 749-794.

Yates, A. (2002). "Decentralization in Pollution Permit Markets." Journal of Public Economic Theory 4: 641-660.

Yohe, G. W. (2000) "The Hybrid Permit cum Price Ceiling Policy Proposal: Intuition from the Prices versus Quantities Literature." OPEC Review 24(4): 287-303.

Young, M. D. and B. J. McCay (1995). Building Equity, Stewardship, and Resilience into Market-Based Property Rights Systems. Property Rights and the Environment: Social and Ecological Issues. S. Hanna and M. Munasinghe. Washington D.C., The Beijer International Institute of Ecological Economics and The World Bank: 87-102.

TEMPORAL ISSUES

Collinge, R. A. and W. E. Oates (1982). "Efficiency in Pollution-Control in the Short and Long Runs: A Systems of Rental Emission Permits." Canadian Journal of Economics 15(2): 346-354.

Cronshaw, M. and J. B. Kruse (1996). "Regulated Firms in Pollution Permit Markets with Banking." Journal of Regulatory Economics 9: 179-89.

Farrow, S. (1987). "Lease Delay Rights: Market Valued Permits and Offshore Leasing." Resources Policy 13: 113-122.

Feng, H. L. and J. Zhao (2006). "Alternative Intertemporal Permit Trading Regimes with Stochastic Abatement Costs." Resource and Energy Economics 28(1): 24-40.

Hagem, C. and H. Westkog (1998). "The Design of a Dynamic Tradeable Quota Sytem under Market Imperfections." Journal of Environmental Economics and Management 36(1): 89-107.

Howe, C. W. and D. R. Lee (1983). "Priority Pollution Rights: Adapting Pollution Control to a Variable Environment." Land Economics 59(2): 141-149.

Kennedy, P. W. and B. Laplante (1999). Environmental policy and time consistency: emission taxes and emissions trading. Environmental Regulation and Market Power. E. Petrakis, E. S. Sartzetakis and A. Xepapadeas. Cheltenham, UK, Edward Elgar Publishing: 116-144.

Kling, Catherine and Jonathan Rubin, "Bankable Permits for the Control of Environmental Pollution," Journal of Public Economics 64(1)(1997):99-113.

Kruse, Jamie and Mark Cronshaw, "Temporal Properties of a Market for Emission Permits with Banking" In Charles Holt and Mark Isaac, Markets for Pollution Permits: Theory and Experiments. (Forthcoming)

Kruse, Jamie and Mark Cronshaw, "An Experimental Analysis of Emission Permits with Banking and the Clean Air Act Amendments of 1990." In Charles Holt and Mark Isaac, Markets for Pollution Permits: Theory and Experiments. (Forthcoming)

Leiby, P. and J. Rubin (2001). "Intertemporal Permit Trading for the Control of Greenhouse Gas Emissions." Environmental & Resource Economics 19(3): 229-256.

Maeda, A. (2004). "Impact of Banking and Forward Contracts on Tradable Permit Markets." Environmental Economics and Policy Studies 6(2): 81-102.

Rubin, Jonathan (1996). "A Model of Intertemporal Emission Trading, Banking and Borrowing." Journal of Environmental Economics and Management 31(3): 269-286.

Schennach, S. M. (2000). "The Economics of Pollution Permit Banking in the Context of Title IV of the 1990 Clean Air Act Amendments." Journal of Environmental Economics and Management 40(3): 189-210.

Sedjo, R. A. and G. Marland (2003). "Inter-trading permanent emissions credits and rented temporary carbon emissions offsets: some issues and alternatives." Climate Policy 3(4): 435-444.

Stevens, B. and A. Rose (2002). "A Dynamic Analysis of the Marketable Permits Approach to Global Warming Policy: A Comparison of Spatial and Temporal Flexibility." Journal of Environmental Economics and Management 44(1): 45-69

Stranlund, J. K., C. Costello, et al. (2005). "Enforcing Emissions Trading when Emissions Permits are Bankable." Journal of Regulatory Economics 28(2): 181-204.

Toman, M. and K. Palmer (1997). "How Should an Accumulative Substance be Banned?" Environmental and Resource Economics 9(1): 83-102.

van Steenberghe, V. (2005). "Carbon Dioxide Abatement Costs and Permit Price: Exploring the Impact of Banking and the Role of Future Commitments." Environmental Economics and Policy Studies 7(2): 75-107.

Yaron, D. (1979). "A Model for the Analysis of Seasonal Aspects of Water Quality Control." Journal of Environmental Economics and Management 6(2): 140-151.

Yates, A.J. and M.B. Cronshaw .(2001)"Pollution Permit Markets with Intertemporal Trading and Asymmetric Information" Journal of Environmental Economics and Management 42(1):104-118.

INITIAL ALLOCATIONS

Böhringer, C., Lange, A. (2005a), ?Economic implications of alternative allocation schemes for emission allowances?, Scandinavian Journal of Economics 107, 563-581

Böhringer, C., Lange, A. (2005b), ?On the design of optimal grandfathering schemes for emission allowances?, European Economic Review 49, 2041-2055

Böhringer, C., Helm, C. (2008): "On the fair division of greenhouse gas abatement cost",Resource and Energy Economics, forthcoming.

Cason, T. N., L. Gangadharan, et al. (2003). "A Laboratory Study of Auctions for Reducing Non-point Source Pollution." Journal of Environmental Economics and Management 46(3): 446-471.

Decanio, S. J. (2007). "Distribution of emissions allowances as an opportunity." Climate Policy 7(2): 91-103.

Eshel, D. M. D. (2005). "Optimal Allocation of Tradable Pollution Rights and Market Structures." Journal of Regulatory Economics 28(2): 205-223.

Franciosi, R., R. M. Isaac, et al. (1993). "An Experimental Investigation of the Hahn-Noll Revenue Neutral Auction for Emissions Licenses." Journal of Environmental Economics and Management 24(1): 1-24.

Hagem, C. (2003). "The Merits of Non-tradable Quotas as a Domestic Policy Instrument to Prevent Firm Closure." Resource and Energy Economics 25(4): 373-386.

Helm, C. (2003). "International Emissions Trading with Endogenous Allowance Choices." Journal of Public Economics 87(12): 2737-2747.

Kampas, A. and B. White (2003). "Selecting Permit Allocation Rules for Agricultural Pollution Control: A Bargaining Solution." Ecological Economics 47(2-3): 135-147.

Kline, J. and F. Menezes, "A Simple Analysis of the US Emission Permit Auctions" Econoimics Letters, Vol. 65, No. 2 (1999): 183-189.

Kling, C. L. and J. H. Zhao (2000). "On the Long-Run Efficiency of Auctioned vs. Free Permits." Economics Letters 69(2): 235-238.

Lai, Y. B. (2007). "The optimal distribution of pollution rights in the presence of political distortions." Environmental & Resource Economics 36(3): 367-388.

Lai, Y. B. (2008). "Auctions or grandfathering: the political economy of tradable emission permits." Public Choice 136(1-2): 181-200.

List, J. and Lucking-Reilly, D. "Demand Reduction in a Multi-Unit Auction: Evidence from a Sportscard Field Experiment," American Economic Review September, 90(4), pp. 961-972, (2000).

Lyon, R. M. (1982). "Auctions and Alternative Procedures for Allocating Pollution Rights." Land Economics 58(1): 16-32.

Lyon, R. M. (1986). "Equilibrium Properties of Auctions and Alternative Procedures for Allocation Transferable Permits." Journal of Environmental Economics and Management 13(2): 129-52.

Mackenzie, I. A., N. Hanley, et al. (2008). "The Optimal Initial Allocation of Pollution Permits: a Relative Performance Approach." Environmental & Resource Economics 39(3): 265-282.

Maeda, A. (2003). "The Emergence of Market Power in Emission Rights Markets: The Role of Initial Permit Distribution." Journal of Regulatory Economics 24(3): 293-314.

Muller, R. A., S. Mestelman, et al. (2002). "Can Double Auctions Control Monopoly and Monopsony Power in Emissions Trading Markets?" Journal of Environmental Economics and Management 44(1): 70-92.

Oehmke, James F. (1987). "The Allocation of Pollutant Discharge Permits by Competitive Auction." Resources and Energy 9: 153-162.

Smith, S. and A. J. Yates (2003). "Optimal Pollution Permit Endowments in Markets with Endogenous Emissions." Journal of Environmental Economics and Management 46(3): 425-446.

Vaillancourt, K. and J. P. Waaub (2006). "A Decision Aid Tool for Equity Issues Analysis in Emission Permit Allocations." Climate Policy 5(5): 487-501.

INVESTMENT ISSUES

Böhringer, C., Löschel, A. (2008): "Climate Policy Induced Investments in Developing Countries: The Implications of Investment Risks", The World Economy, forthcoming.

Insley, M., C. (2003). "On the Option to Invest in Pollution Control under a Regime of Tradable Emissions Allowances." Canadian Journal of Economics Revue Canadienne D Economique 36: 860-883.

Kort, P. M. (1996). "Pollution-Control and the Dynamics Of the Firm - the Effects Of Market-Based Instruments On Optimal Firm Investments." Optimal Control Applications & Methods 17(4): 267-279.

Letson, D. (1992). "Investment Decisions and Transferable Discharge Permits: An Empirical Study of Water Quality Management under Policy Uncertainty." Environmental and Resource Economics 2(5): 441-458.

Maloney, M. and G. L. Brady (1988). "Capital Turnover and Marketable Property Rights." The Journal of Law and Economics 31(1): 203-226.

Nelson, R., T. Tietenberg, et al. (1993). "Differential Environmental Regulation: Effects On Electric Utility Capital Turnover and Emissions." Review of Economics and Statistics 75(2): 368-373.

ENFORCEMENT

Ben-David, S., D. Brookshire, et al. (2000). "Attitudes Toward Risk and Compliance in Emission Permit Markets." Land Economics 76(4): 590-600.

Cason, T. N. and L. Gangadharan (2006). "Emissions variability in tradable permit markets with. imperfect enforcement and banking." Journal of Economic Behavior & Organization 61(2): 199-216.

Chavez, C. A. and J. K. Stranlund (2003). "Enforcing transferable permit systems in the presence of market power." Environmental & Resource Economics 25(1): 65-78.

Chen, H.-C. and C.-M. Liu (2005). "Tradable-permit Pollution Control Systems with and without Commitment to Auditing." Environmental Economics and Policy Studies 7(1): 15-37.

Harford, J. D. (1978). "Firm Behavior Under Imperfectly Enforceable Pollution Standards and Taxes." Journal of Environmental Economics and Management 5(1): 26-43.

Keeler, A. G. (1991). "Noncompliant Firms in Transferable Discharge Permit Markets: Some Extensions." Journal of Environmental Economics and Management 21(2): 180-189.

Konishi, H. (2005). "Intergovernmental versus Intersource Emissions Trading When Firms are Noncompliant." Journal of Environmental Economics and Management 49(2): 235-261.

Laffont, J.-J. and J. Tirole (1996). "Pollution Permits and Compliance Strategies." Journal of Public Economics 62(1-2): 85-125.

Malik, A. S. (1990). "Markets for Pollution Control When Firms are Non-Compliant." Journal of Environmental Economics and Management 18(2): 97-106.

Malik, A. S. (2002). "Further Results on Permit Markets with Market Power and Cheating." Journal of Environmental Economics and Management 44(3): 371-390.

Montero, J.-P. (2002). "Prices versus Quantities with Incomplete Enforcement." Journal of Public Economics 85(3): 435-454.

Montero, J.-P. (2005). "Pollution Markets with Imperfectly Observed Emissions." Journal of Economics 36(3): 645-660.

Murphy, J. J. and J. K. Stranlund (2006). "Direct and market effects of enforcing emissions trading programs: An experimental analysis." Journal of Economic Behavior & Organization 61(2): 217-233.

Mrozek, J. R. and A. G. Keeler (2004). "Pooling of Uncertainty: Enforcing Tradable Permits Regulation when Emissions are Stochastic." Environmental & Resource Economics 29(4): 459-481.

Russell, C.S. (1990). "Game Models for Structuring Monitoring and Enforcement Systems." Natural Resource Modeling 4(2): 143-173.

Russell, C.S., W. Harrington, et al. (1986). Enforcing Pollution Control Laws. Washington, D.C., Resources for the Future, 231 p.

SanMartin, R. (2003). "Marketable Emission Permits with Imperfect Monitoring." Energy Policy 31(13): 1369-1378.

Silva, E. C. D. and X. Zhu (2008). "Global trading of carbon dioxide permits with noncompliant polluters." International Tax and Public Finance 15(4): 430-459.

Stranlund, J.K. and C.A. Chavez. (2000). "Effective Enforcement of a Transferable Emissions Permit System with a Self-Reporting Requirement." Journal of Regulatory Economics 18(2): 113-131.

Stranlund, J. K. and K. K. Dhanda, (1999). "Endogenous Monitoring and Enforcement of a Transferable Emissions Permit System" Journal of Environmental Economics and Management, 38(3): 267-282.

Stranlund, J. K., C. Costello, et al. (2005). "Enforcing emissions trading when emissions permits are bankable." Journal of Regulatory Economics 28(2): 181-204.

Stranlund, J. K. (2008). "Risk aversion and compliance in markets for pollution control." Journal of Environmental Management 88(2): 203-210.

Subramanian, R., S. Gupta, et al. (2007). "Compliance strategies under permits for emissions." Production and Operations Management 16(6): 763-779.

Zhang, Z. X. (1999). "International Greenhouse Emissions Trading: Who should be Held Liable for the Non-compliance by Sellers?" Ecological Economics 31(3): 323-329.

EX POST EVALUATION

Freeman, J. and C. Kolstad, Eds. (2007). Moving to Markets: Lessons from Twenty Years of Experience. New York, Oxford University Press.

Tietenberg, T. (2007). Tradable Permits in Principle and Practice. Moving to Markets: Lessons from Twenty Years of Experience. J. Freeman and C. Kolstad. New York, Oxford University Press: 63-94.

Tietenberg, T. and N. Johnstone (2004). Ex Post Evalaution of Tradable Permits: Methodological Issues and Literature Review. Tradable permits: Policy Evaluation, Design and Reform. T. Tietenberg and N. Johnstone. Paris, Organization for Economic Co-operation and Development: 9-44.

Tietenberg, T. and N. Johnstone (2004). The Management of Ex Post Public Policy Evaluations. Tradable Permits: Policy Evaluation, Design and Reform. T. Tietenberg and N. Johnstone. Paris, Organization for Economic Co-operation and Development: 173-189.

Back to Sustainable Development Web Page

Web Page Created by William W. Chamberlain '98
Updated by Christina McAlpin '99