Tradable permits and unrealized gains from trade

A-Tier
Journal: Energy Economics
Year: 2013
Volume: 40
Issue: C
Pages: 416-424

Authors (3)

Färe, Rolf (not in RePEc) Grosskopf, Shawna (Oregon State University) Pasurka,, Carl A. (not in RePEc)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

With the advent of tradable permit programs for bad outputs (e.g., SO2 emissions); concerns arose over whether the theoretical gains from trade would be realized. We will employ a methodology that calculates the potential gains accruing to coal-fired electric power plants from implementing a tradable permit program. The magnitude of the potential gains in a plant's kilowatt hour output from a tradable permit program relative to its observed production provides insights into the existence of intertemporal allocative inefficiencies and spatial allocative inefficiencies after the implementation of a tradable permit program.

Technical Details

RePEc Handle
repec:eee:eneeco:v:40:y:2013:i:c:p:416-424
Journal Field
Energy
Author Count
3
Added to Database
2026-01-25