Welfare improvement properties of an allowance market in a production economy

Antoine Mandel

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Abstract: This paper studies the welfare improvement properties of a market of allowances in an economy with a single type of externality. We show that thanks to the opening of such a market the Pareto optima can be decentralized as marginal pricing equilibria. However, the set of equilibria is much larger than this of Pareto optima. In order to discriminate the efficient equilibria we introduce a demand revealing mechanism tailored for this framework.

Keywords: markets of allowances; General equilibrium theory; Pareto optimality; externalities; Equilibre général économique; Pareto optimalité; externalités; marchés de droits (search for similar items in EconPapers)
Date: 2007-05
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00155803
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Published in 2007

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Related works:
Working Paper: Welfare Improvement Properties of an Allowance Market in a Production Economy (2009)
Working Paper: Welfare Improvement Properties of an Allowance Market in a Production Economy (2009)
Working Paper: Welfare improvement properties of an allowance market in a production economy (2007)
Working Paper: Welfare improvement properties of an allowance market in a production economy (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00155803

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