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Market problems in the distribution of emission rights
Author(s) -
Rose Marshall
Publication year - 1973
Publication title -
water resources research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.863
H-Index - 217
eISSN - 1944-7973
pISSN - 0043-1397
DOI - 10.1029/wr009i005p01132
Subject(s) - bidding , position (finance) , measure (data warehouse) , microeconomics , process (computing) , business , control (management) , marginal cost , distribution (mathematics) , economics , environmental economics , industrial organization , computer science , finance , mathematics , mathematical analysis , management , database , operating system
An auction‐type bidding process is analyzed. A public authority distributes permits providing the right to discharge specified waste loads into a medium. Potential purchasers of the permits may perceive themselves as having some measure of control over the permit prices through their bids. It is shown that, given sufficient information on the nature of bidding strategies, the authority can infer the firms' marginal treatment cost functions from their bidding behavior and may therefore be in a position to impose the optimal solution of discharges.