eprintid: 4073
rev_number: 17
eprint_status: archive
userid: 351
dir: disk0/00/00/40/73
datestamp: 2016-01-15 02:03:59
lastmod: 2021-08-27 17:14:43
status_changed: 2016-01-15 02:03:59
type: monograph
metadata_visibility: show
item_issues_count: 2
creators_name: Klaassen, G.
creators_name: Forsund, F.R.
creators_name: Amann, M.
creators_id: 1355
creators_id: 1136
creators_orcid: 0000-0002-1963-0972
title: Emission Trading in Europe with an Exchange Rate
ispublished: pub
internal_subjects: iis_ecn
internal_subjects: iis_env
divisions: TAP
abstract: This paper explores the analytical and empirical properties of a new method  for emission trading according to a fixed exchange rate. The exchange rate is  based on the ratios of the marginal costs of abatement in the optimal solution in order to account for the impact of the location of emission sources on the deposition. It is shown that, generally, this system will not achieve the  optimal solution and does not guarantee that environmental deposition  constraints are not violated, although total abatement costs are always reduced. A routine was developed to mimic trading as a bilateral, sequential  process, subject to an exchange rate. In the example used, results for SO2 emissions in Europe will show that, starting from a uniform reduction,  exchange-rate trading brings higher cost savings than one-to-one trading, without achieving the cost minimum. Sulfur deposition targets are not violated since the initial emission allocation overfulfilled targets in many places. The results are sensitive to: pre-trade emission levels, the transaction  costs, the availability of information on potential cost savings, and  assumptions made on the behavior of trading partners.
date: 1994
date_type: published
publisher: RR-95-002. Reprinted from Environmental and Resource Economics, 4:305-330 [1994].
iiasapubid: RP-95-002
iiasa_bibref: Reprinted from Environmental and Resource Economics; 4:305-330 [1994]
price: 10
creators_browse_id: 1376
creators_browse_id: 15
full_text_status: public
monograph_type: research_reprint
publication: Environmental and Resource Economics
volume: 4
place_of_pub: IIASA, Laxenburg, Austria
pagerange: 305-330
pages: 28
refereed: TRUE
coversheets_dirty: FALSE
fp7_type: info:eu-repo/semantics/book
citation:   Klaassen, G. <https://pure.iiasa.ac.at/view/iiasa/1376.html>, Forsund, F.R., & Amann, M. <https://pure.iiasa.ac.at/view/iiasa/15.html> ORCID: https://orcid.org/0000-0002-1963-0972 <https://orcid.org/0000-0002-1963-0972>  (1994).  Emission Trading in Europe with an Exchange Rate.   IIASA Research Report (Reprint). IIASA, Laxenburg, Austria: RR-95-002. Reprinted from Environmental and Resource Economics, 4:305-330 [1994].     
document_url: https://pure.iiasa.ac.at/id/eprint/4073/1/RR-95-02.pdf