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The Economics of Enforcing Emissions Markets

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  • John K. Stranlund

Abstract

This article reviews the economic literature on enforcing emissions permit markets. This literature has produced hypotheses about firms’ compliance choices and permit market outcomes, tests of these hypotheses with economic experiments, and insights about the efficient design of enforcement strategies for emissions markets. The findings of the literature are used to identify lessons concerning enforcement and compliance in international markets that are aimed at controlling greenhouse gases.

Suggested Citation

  • John K. Stranlund, 2017. "The Economics of Enforcing Emissions Markets," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 11(2), pages 227-246.
    • Handle: RePEc:oup:renvpo:v:11:y:2017:i:2:p:227-246.
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    File URL: http://hdl.handle.net/10.1093/reep/rex009
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    Citations

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    Cited by:

    1. Lidia Vidal-Meliá & Carmen Arguedas & Eva Camacho-Cuena & José Luis Zofío, 2022. "An Experimental Analysis of the Effects of Imperfect Compliance on Technology Adoption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 425-451, March.
    2. Angelo Antoci & Simone Borghesi & Gianluca Iannucci & Paolo Russu, 2020. "Emission permits, innovation and sanction in an evolutionary game," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 37(2), pages 525-546, July.
    3. Baudry, Marc & Faure, Anouk & Quemin, Simon, 2021. "Emissions trading with transaction costs," Journal of Environmental Economics and Management, Elsevier, vol. 108(C).
    4. Wang, Xu & Zhu, Lei & Liu, Pengfei, 2021. "Manipulation via endowments: Quantifying the influence of market power on the emission trading scheme," Energy Economics, Elsevier, vol. 103(C).
    5. Stranlund, John K. & Murphy, James J. & Spraggon, John M. & Zirogiannis, Nikolaos, 2019. "Tying enforcement to prices in emissions markets: An experimental evaluation," Journal of Environmental Economics and Management, Elsevier, vol. 98(C).
    6. Timothy N. Cason & Lana Friesen & Lata Gangadharan, 2021. "Complying with environmental regulations: experimental evidence," Chapters, in: Ananish Chaudhuri (ed.), A Research Agenda for Experimental Economics, chapter 4, pages 69-92, Edward Elgar Publishing.
    7. Herzing, Mathias, 2021. "Multiple equilibria in the context of inspection probabilities depending on firms’ relative emissions," Resource and Energy Economics, Elsevier, vol. 63(C).
    8. Kejia Hu & Sunil Chopra & Yuche Chen, 2021. "The Effect of Tightening Standards on Automakers’ Non‐compliance," Production and Operations Management, Production and Operations Management Society, vol. 30(9), pages 3094-3115, September.
    9. Gupta, Shreekant & Saksena, Shalini & Baris, Omer F., 2019. "Environmental enforcement and compliance in developing countries: Evidence from India," World Development, Elsevier, vol. 117(C), pages 313-327.

    More about this item

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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