The efficiency and robustness of allowance banking in the US Acid Rain Program

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dc.contributor.authorEllerman, A. Denny
dc.contributor.authorMontero, Juan Pablo
dc.date.accessioned2024-01-10T14:21:58Z
dc.date.available2024-01-10T14:21:58Z
dc.date.issued2007
dc.description.abstractThis paper provides an empirical evaluation of the efficiency of allowance banking in the nationwide market for sulfur dioxide (SO2) emission allowances that was created by the U.S. Acid Rain Program. We develop a model of efficient banking, select appropriate parameter values, and evaluate the efficiency of observed temporal pattern of abatement based on aggregate data from the first eight years of the Acid Rain Program. Contrary to the general opinion that banking in this program has been excessive, we find that it has been reasonably efficient. We also identify the erroneous assumptions underlying the earlier view and the conditions required for efficient banking to exist independently of changes in the counterfactual, an attribute we call robustness. These results show that firms use banking provisions in a rational and predictable way and that, at least in the US Acid Rain Program, there is no support for the often expressed concern that banked permits will be used all at once to create emissions spikes.
dc.format.extent25 páginas
dc.fuente.origenWOS
dc.identifier.issn0195-6574
dc.identifier.urihttps://repositorio.uc.cl/handle/11534/79828
dc.identifier.wosidWOS:000249857400003
dc.information.autorucInstituto de Economía;Montero J;S/I;87534
dc.issue.numero4
dc.language.isoen
dc.nota.accesoSin adjunto
dc.pagina.final71
dc.pagina.inicio47
dc.publisherINT ASSOC ENERGY ECONOMICS
dc.revistaENERGY JOURNAL
dc.rightsregistro bibliográfico
dc.subjectEMISSION TRADING AUCTION
dc.subjectSULFUR-DIOXIDE EMISSIONS
dc.subjectEPAS
dc.subject.ods13 Climate Action
dc.subject.odspa13 Acción por el clima
dc.titleThe efficiency and robustness of allowance banking in the US Acid Rain Program
dc.typeartículo
dc.volumen28
sipa.codpersvinculados87534
sipa.indexWOS
sipa.indexScopus
sipa.trazabilidadCarga SIPA;09-01-2024
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