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Price floors for emissions trading

Wood, Peter J; Jotzo, Frank

Description

Price floors in greenhouse gas emissions trading schemes can guarantee minimum abatement efforts if prices are lower than expected, and they can help manage cost uncertainty, possibly as complements to price ceilings. Provisions for price floors are found in several recent legislative proposals for emissions trading. Implementation however has potential pitfalls. Possible mechanisms are government commitments to buy back permits, a reserve price at auction, or an extra fee or tax on acquittal...[Show more]

dc.contributor.authorWood, Peter J
dc.contributor.authorJotzo, Frank
dc.date.accessioned2015-12-10T23:23:20Z
dc.identifier.issn0301-4215
dc.identifier.urihttp://hdl.handle.net/1885/66916
dc.description.abstractPrice floors in greenhouse gas emissions trading schemes can guarantee minimum abatement efforts if prices are lower than expected, and they can help manage cost uncertainty, possibly as complements to price ceilings. Provisions for price floors are found in several recent legislative proposals for emissions trading. Implementation however has potential pitfalls. Possible mechanisms are government commitments to buy back permits, a reserve price at auction, or an extra fee or tax on acquittal of emissions permits. Our analysis of these alternatives shows that the fee approach has budgetary advantages and is more compatible with international permit trading than the alternatives. It can also be used to implement more general hybrid approaches to emissions pricing.
dc.publisherElsevier
dc.sourceEnergy Policy
dc.subjectKeywords: Cost uncertainty; Emissions Trading; Hybrid approach; Hybrid emissions pricing; Price floor; Reserve price; Commerce; Emission control; Floors; Gas emissions; Global warming; Greenhouse gases; Costs; emissions trading; energy policy; environmental economi Emissions trading; Hybrid emissions pricing; Price floor
dc.titlePrice floors for emissions trading
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume39
dc.date.issued2011
local.identifier.absfor160505 - Economic Development Policy
local.identifier.ariespublicationf2965xPUB1367
local.type.statusPublished Version
local.contributor.affiliationWood, Peter J, College of Asia and the Pacific, ANU
local.contributor.affiliationJotzo, Frank, College of Asia and the Pacific, ANU
local.description.embargo2037-12-31
local.bibliographicCitation.issue3
local.bibliographicCitation.startpage1746
local.bibliographicCitation.lastpage1753
local.identifier.doi10.1016/j.enpol.2011.01.004
local.identifier.absseo970114 - Expanding Knowledge in Economics
dc.date.updated2016-02-24T08:13:08Z
local.identifier.scopusID2-s2.0-79952073583
local.identifier.thomsonID000288971100071
CollectionsANU Research Publications

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