Pricing mechanisms for cap and trade policies: computer-assisted smart markets for air quality

2013 ◽  
Vol 57 (8) ◽  
pp. 1240-1251 ◽  
Author(s):  
Keith Willett ◽  
Anetta Caplanova ◽  
Rudolf Sivak
Keyword(s):  
Air Quality ◽  
Computer Assisted ◽  
Trade Policies ◽  
Cap And Trade ◽  
Smart Markets

scholarly journals Defensive Investments and the Demand for Air Quality: Evidence from the NOx Budget Program

2017 ◽  
Vol 107 (10) ◽  
pp. 2958-2989 ◽  
Author(s):  
Olivier Deschênes ◽  
Michael Greenstone ◽  
Joseph S. Shapiro
Keyword(s):  
Air Quality ◽  
Nitrogen Oxides ◽  
Willingness To Pay ◽  
Mortality Rates ◽  
Health Impacts ◽  
Cap And Trade ◽  
Ambient Ozone ◽  
Pharmaceutical Expenditures ◽  
Trade Market ◽  
Quality Evidence

The demand for air quality depends on health impacts and defensive investments, but little research assesses the empirical importance of defenses. A rich quasi-experiment suggests that the Nitrogen Oxides (NOx) Budget Program (NBP), a cap-and-trade market, decreased NOx emissions, ambient ozone concentrations, pharmaceutical expenditures, and mortality rates. The annual reductions in pharmaceutical purchases, a key defensive investment, and mortality are valued at about $800 million and $1.3 billion, respectively, suggesting that defenses are over one-third of willingness-to-pay for reductions in NOx emissions. Further, estimates indicate that the NBP's benefits easily exceed its costs and that NOx reductions have substantial benefits. (JEL I12, Q51, Q53, Q58)

Computer Assisted Air Quality Enforcement

1974 ◽  
Vol 24 (11) ◽  
pp. 1084-1085
Author(s):  
Bernard J. Senroer ◽  
Richard M. Holston ◽  
Albert E. Mazei
Keyword(s):  
Air Quality ◽  
Computer Assisted ◽  
Quality Enforcement

scholarly journals Cost-Effectiveness Implications of Carbon Price Certainty

2020 ◽  
Vol 110 ◽  
pp. 113-118
Author(s):  
Joseph E. Aldy ◽  
Sarah Armitage
Keyword(s):  
Cost Effectiveness ◽  
Carbon Tax ◽  
Pollution Abatement ◽  
Cost Effective ◽  
Carbon Price ◽  
Trade Policies ◽  
Price Uncertainty ◽  
Cap And Trade ◽  
Emission Abatement ◽  
Resource Costs

While a firm knows the carbon price with certainty under a tax, it must form an expectation about future allowance prices to identify its cost-effective abatement investment under a capand-trade program. We illustrate graphically how errors in forming this expectation increase the costs of irreversible pollution abatement investment under cap-and-trade relative to a tax. We describe empirical “cost-effectiveness anomalies” in allowance markets that may be attributed to cap-and-trade's inherent uncertainty. We model investment under simulated US carbon tax and cap-and-trade policies and find that allowance price uncertainty can increase resource costs 20 percent for a given quantity of emission abatement.

Offset Ratio Assessment for Volatile Organic Compounds in Cap and Trade Zone

2012 ◽  
Vol 518-523 ◽  
pp. 2612-2616
Author(s):  
Shu Kuang Ning ◽  
Chia Hung Wang
Keyword(s):  
Air Quality ◽  
Volatile Organic Compounds ◽  
Organic Compounds ◽  
Cap And Trade ◽  
Adverse Health Effects ◽  
Volatile Organic ◽  
Quantity Control ◽  
Total Quantity Control

Kaohsiung and Pintung are the first regions were set into action of total quantity control zones for air quality in Taiwan. Cap and trade programs have built for the particle matters (PM10), sulfur oxides (SOx), nitrogen oxides (NOx) and Volatile Organic Compounds (VOCs) in 2010. The offset ratio was designed as 1.0 or 1.2 various on the offset sources. The fixed offset ratio setting is suitable for PM10, SOx, and NOx since their characters are unitary. However, VOCs include a variety of chemicals, some of which may have short- or long-term adverse health effects. Even the same pollutant trading amount cannot guarantee the same health risk or environmental impacts. It would induced the highly uncertainty of air quality for the fixed offset ratio system. This study therefore tried to create a new methodology based on the pollutant impact strength of health and environment for determining the offset ratio of VOCs. An equation for calculating the offset ratio of VOCs was proposed and evaluated by case study. The elasticity of weighting determination was remained to the decision makers for confronting the various environmental improving targets.

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