Permitting allowance banking in emissions trading programs can reduce expected
compliance costs by giving capped firms flexibility to adjust the time path of abatement and …

Past, current and proposed emissions trading schemes include allowance banking
provisions that range from no banking to unlimited banking. Some schemes establish a …

This paper examines the implications of alternative allowance allocation designs for industry
profits and GDP under a federal cap-and-trade program to reduce greenhouse gas …

Market-based schemes to control environmental quality have long been favored economists.
The 1990 Clean Air Act Amendments will institute such a scheme on a national scale for …

We compare several emissions reduction instruments, including quantity policies with
banking and borrowing, price policies, and hybrid policies (safety valve and price collar) …

Emission trading is now well established as a method for regulating emissions of uniformly
mixed pollutants. The classic analysis assumes that the regulatory authority sets an …

This paper presents a model of the collective emission permit banking behavior of electricity-
generating units affected by Title IV of the Clean Air Act Amendments of 1990. A rigorous …

This paper considers the optimal design of an emissions trading program that includes a
safety valve tax that allows pollution sources to escape the emissions cap imposed by the …

For decades, economists have advocated using market incentives to correct for undesirable
externalities from production and consumption. One method, examined in de-tail by John …

In theory, efficiency and compliance levels induced by an emission trading system should
not depend on the initial allocation mechanism for permits in the absence of transaction …