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Contract‐Based Trading Programs in Environmental Regulation
Author(s) -
Keeler Andrew G.
Publication year - 2004
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1093/cep/byh039
Subject(s) - emissions trading , alternative trading system , stochastic game , business , control (management) , environmental regulation , trading strategy , industrial organization , space (punctuation) , microeconomics , economics , algorithmic trading , natural resource economics , computer science , finance , greenhouse gas , ecology , operating system , management , biology
Emissions trading markets have been successful in addressing pollution problems where regulated entities can be treated in a similar manner and precise control of emissions quantities across time and space is not critical. In other situations, trading must account for individual circumstances, complexity, and the patchwork of existing regulations. In these circumstances trading systems have elements of contracts, in that transactions are unique and must be negotiated and approved individually. Such programs imply a high payoff to improved environmental information and to innovations in trading systems that allow making better use of such information. (JEL Q21 , Q25 , Q28 )