Rate of Return Regulation and Emission Permits Trading under Uncertainty

This paper analyzes the dynamic effects of rate-of-return regulation on firms’ emissions compliance behavior when the price of emissions permits is uncertain. The paper shows that uncertainty regarding the price of permits would motivate a regulate...

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Bibliographic Details
Main Authors:	Zhang, Fan, Huang, Tao
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	ALLOWANCE TOTAL EMISSIONS ALLOCATION OF ALLOWANCES UNCERTAINTIES PUBLIC UTILITIES SUBSTITUTION POWER PLANTS ENERGY MARKETS PLANT PERFORMANCE HIGH‐ SULFUR COAL RELATIVE PRICE CARBON DIOXIDE PUBLIC ECONOMICS PRICE OF ALLOWANCES PRICE OF ELECTRICITY CARBON NITROGEN OXIDES MARGINAL COST INTEREST RATE EMISSIONS EXTREME SCENARIOS REVENUES HIGH‐SULFUR COAL PRICE CLEAN AIR ACT NOX MARGINAL ABATEMENT AIR ANNUAL CAP EMISSION PERMITS CLEAN AIR PROBABILITY DISTRIBUTION EMISSIONS ABATEMENT ECONOMIC ANALYSIS ENERGY INFORMATION ADMINISTRATION ELECTRIC UTILITIES CO2 TRADE SYSTEM ALLOWANCE ALLOCATION INVESTMENT BEHAVIOR SCENARIOS DEMAND ELASTICITY PRICE VOLATILITY OXIDES SULFUR COAL SURPLUS OF ALLOWANCES MARKETS POLLUTION EMISSION TRADING PRODUCT ENVIRONMENTAL ECONOMICS LOW‐SULFUR COAL AMOUNT OF EMISSIONS FUELS FUEL COSTS SULFUR ABATEMENT COST ALLOWANCE PRICE PRICE CHANGE MARKET INTEREST RATE MARKET OUTCOMES PERMIT TRADING REGULATORY POLICIES EMISSION HEAT ENVIRONMENTAL POLICY POLICIES CARBON TRADING UTILITIES COST OF ALLOWANCES VALUE POWER ELECTRICITY COAL COMBUSTION CLIMATE DEMAND SULFUR COALS ABATEMENT POLLUTANTS MARGINAL ABATEMENT COST FUEL MARKET ALLOWANCE PRICES TRANSACTION COSTS SPOT MARKET MARKET ECONOMIC THEORY ABATEMENT COSTS POLICY EMISSIONS ALLOWANCES ALLOWANCES ELECTRICITY PRICES ENVIRONMENTAL EMISSIONS ALLOWANCE TRADING PROBABILITY DENSITY CARBON PRICES COMBUSTION INVESTMENT NITROGEN COALS VALUE OF ALLOWANCES COAL ALLOCATION ENERGY ECONOMICS TRANSACTIONS COSTS FUEL EMISSIONS PERMIT PRICES RAIN LESS ENVIRONMENTAL REGULATION POLLUTION CONTROL SULFUR DIOXIDE SULFUR CONTENT INVESTMENTS SO2 CLIMATE POLICY PRICE OF COAL RISK AVERSION ACID RAIN SCRUBBERS CAP‐AND‐TRADE SYSTEMS ALLOWANCE ALLOCATIONS ACID PRICES APPROACH ELECTRICITY MARKETS BENEFITS LAND ECONOMICS COAL PROPERTIES ENERGY
Online Access:	http://documents.worldbank.org/curated/en/2015/06/24714547/rate-return-regulation-emission-permits-trading-under-uncertainty http://hdl.handle.net/10986/22220

Internet

http://documents.worldbank.org/curated/en/2015/06/24714547/rate-return-regulation-emission-permits-trading-under-uncertainty
http://hdl.handle.net/10986/22220

Rate of Return Regulation and Emission Permits Trading under Uncertainty

Internet

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