Two Patterns of Price Dynamics were Observed in Greenhouse Gases Emissions Trading Experiments: An Application of Point Equilibrium

Yoichi Hizen, 洋一 肥前, ヨウイチ ヒゼン, Takao Kusakawa, 孝夫 草川, タカオ クサカワ, Hidenori Niizawa, 秀則 新澤, Tatsuyoshi Saijo () and タツヨシ サイジョウ

No 86, Discussion Paper from Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University

Abstract: This paper compares efficiencies of double auction and bilateral trading in GHG emission trading experiments with the addition of two rules, abatement irreversibility of GHG emissions and non-compliance penalty, to Hizen and Saijo (1998). Using a new concept of equilibrium, we found that (i) Results were grouped into two cases. In one case, excessive reductions occurred at the early stage of the experiment and efficiency was relatively low. In the other case, excessive reduction did not occur at the early stage of experiment and efficiency was relatively high. (ii) In both cases, efficiency of double auction was higher than that of bilateral trading. (iii) Emissions trading lowered emissions reduction costs. (iv) Excessive emissions reduction occurred in almost all the sessions.

Pages: 19 pages
Date: 2002-04
Note: May 2001
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Citations: View citations in EconPapers (2)

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Working Paper: Two Patterns of Price Dynamics were Observed in Greenhouse Gases Emissions Trading Experiment: An Application of Point Equilibrium (2001)
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