Alternative intertemporal permit trading regimes with stochastic abatement costs

Hongli Feng and Jinhua Zhao

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: We examine the social efficiency of alternative intertemporal permit trading regimes. The role of uncertainty and information asymmetry is discussed. For banking to be welfare improving, uncertainty itself does not matter, while information asymmetry does. Three effects of banking are identified: externality effect, information effect, and total permit effect. In the absence of total permit effect, banking is welfare improving if information effect is positive and dominates the externality effect. The relative efficiency of banking regimes with different intertemporal trading ratios is affected by the slope of the benefit and damage functions and the covariance of the shocks.

Date: 2006-01-01
References: Add references at CitEc
Citations: View citations in EconPapers (26)

Downloads: (external link)
https://dr.lib.iastate.edu/server/api/core/bitstre ... 38d2e1c364a0/content
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Journal Article: Alternative intertemporal permit trading regimes with stochastic abatement costs (2006)
Working Paper: Alternative Intertemporal Permit Trading Regimes with Stochastic Abatement Costs (2002)
Working Paper: Alternative Intertemporal Permit Trading Regimes with Stochastic Abatement Costs (2002)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:isu:genstf:200601010800001338

Access Statistics for this paper

More papers in ISU General Staff Papers from Iowa State University, Department of Economics Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070. Contact information at EDIRC.
Bibliographic data for series maintained by Curtis Balmer ().