IDEAS home Printed from https://ideas.repec.org/p/ioe/doctra/201.html
   My bibliography  Save this paper

Trading Quasi-emission Permits.Vers. 6/2003

Author

Listed:
  • Juan-Pablo Montero

    (Instituto de Economía. Pontificia Universidad Católica de Chile.)

Abstract

I study the design of environmental policies for a regulator that has incomplete information on firms' emissions and costs of production and abatement (e.g., air pollution in cities with numerous small polluting sources). Because of incomplete information on emissions, there is no policy that can implement the first-best. Since the regulator can observe firms' abatement technologies, however, it is possible to design a quasi-emissions trading program based on this information and show that it can provide higher welfare than command-and control regulation such as technology or emission standards. I then empirically examine this claim using evidence from a particulate quasi-emissions trading program in Santiago, Chile.

Suggested Citation

  • Juan-Pablo Montero, 2002. "Trading Quasi-emission Permits.Vers. 6/2003," Documentos de Trabajo 201, Instituto de Economia. Pontificia Universidad Católica de Chile..
    • Handle: RePEc:ioe:doctra:201
    as

    Download full text from publisher

    File URL: https://www.economia.uc.cl/docs/doctra/dt-201.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Steve Sorrell & Jim Skea (ed.), 1999. "Pollution for Sale," Books, Edward Elgar Publishing, number 1696.
    2. Richard Schmalensee & Paul L. Joskow & A. Denny Ellerman & Juan Pablo Montero & Elizabeth M. Bailey, 1998. "An Interim Evaluation of Sulfur Dioxide Emissions Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 53-68, Summer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Stavins, Robert, 2004. "Environmental Economics," RFF Working Paper Series dp-04-54, Resources for the Future.
    2. Edwin Woerdman, 2000. "Competitive Distortions In An International Emissions Trading Market," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 5(4), pages 337-360, December.
    3. Stavins, Robert, 2003. "Market-Based Environmental Policies: What Can We Learn from U.S. Experience and Related Research?," Working Paper Series rwp03-031, Harvard University, John F. Kennedy School of Government.
    4. Juan-Pablo Montero, 2004. "Tradable permits with incomplete monitoring - Evidence from Santiago's particulate permits program," Working Papers 0415, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
    5. Woerdman, Edwin, 2000. "Implementing the Kyoto protocol: why JI and CDM show more promise than international emissions trading," Energy Policy, Elsevier, vol. 28(1), pages 29-38, January.
    6. Richard Schmalensee & Robert N. Stavins, 2013. "The SO 2 Allowance Trading System: The Ironic History of a Grand Policy Experiment," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 103-122, Winter.
    7. Revesz, Richard & Stavins, Robert, 2004. "Environmental Law and Policy," Working Paper Series rwp04-023, Harvard University, John F. Kennedy School of Government.
    8. Juan-Pablo Montero, 2005. "Pollution Markets with Imperfectly Observed Emissions," RAND Journal of Economics, The RAND Corporation, vol. 36(3), pages 645-660, Autumn.
    9. Edwin Woerdman & Wytze van der Gaast, 2001. "Project-Based Emissions Trading: The Impact of Institutional Arrangements on Cost-Effectiveness," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 6(2), pages 113-154, June.
    10. Burtraw, Dallas & Palmer, Karen L. & Heintzelman, Martin, 2000. "Electricity Restructuring: Consequences and Opportunities for the Environment," Discussion Papers 10854, Resources for the Future.
    11. Woerdman, Edwin, 2000. "Organizing emissions trading: the barrier of domestic permit allocation," Energy Policy, Elsevier, vol. 28(9), pages 613-623, July.
    12. Coria, Jessica & Sterner, Thomas, 2008. "Tradable Permits in Developing Countries: Evidence from Air Pollution in Santiago, Chile," RFF Working Paper Series dp-08-51, Resources for the Future.
    13. Stavins, Robert, 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," RFF Working Paper Series dp-01-53, Resources for the Future.
    14. Coria, Jessica & Löfgren, Åsa & Sterner, Thomas, 2009. "To Trade or Not to Trade: Firm-Level Analysis of Emissions Trading in Santiago, Chile," RFF Working Paper Series dp-09-25-efd, Resources for the Future.
    15. Don Fullerton & Li Gan & Miwa Hattori, 2015. "A model to evaluate vehicle emission incentive policies in Japan," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(1), pages 79-108, January.
    16. Jayson Lusk, 2011. "The market for animal welfare," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 28(4), pages 561-575, December.
    17. Richard Schmalensee & Robert N. Stavins, 2019. "Policy Evolution under the Clean Air Act," Journal of Economic Perspectives, American Economic Association, vol. 33(4), pages 27-50, Fall.
    18. Considine, Timothy J. & Larson, Donald F., 2006. "The environment as a factor of production," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 645-662, November.
    19. Brookshire, David S & Burness, H Stuart, 2001. "The Informational Role of the EPA SO2 Permit Auction," Journal of Regulatory Economics, Springer, vol. 20(1), pages 43-60, July.
    20. Santore, Rudy & Robison, H. David & Klein, Yehuda, 2001. "Strategic state-level environmental policy with asymmetric pollution spillovers," Journal of Public Economics, Elsevier, vol. 80(2), pages 199-224, May.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ioe:doctra:201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jaime Casassus (email available below). General contact details of provider: https://edirc.repec.org/data/iepuccl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.