Price volatility and risk exposure: on market-based environmental policy instruments

被引:34
作者
Baldursson, FM
von der Fehr, NHM
机构
[1] Univ Oslo, Dept Econ, N-0317 Oslo, Norway
[2] Univ Iceland, Dept Econ, IS-101 Reykjavik, Iceland
关键词
regulation; effluent taxes; tradable quotas; uncertainty; risk aversion; environmental management;
D O I
10.1016/j.jeem.2003.06.004
中图分类号
F [经济];
学科分类号
02 ;
摘要
We explore the efficacy of price and quantity controls as environmental policy instruments in a stochastic setting in which agents are risk averse. We demonstrate that the assumption of risk aversion may improve the performance of a tax relative to that of a system of tradable quotas, and that restricting quota trade may enhance efficiency even though risk aversion in itself limits volumes of trade. The government may be able to improve the performance of a tradable quota system by judicious choice of distribution and amount of initial quotas and by trading pro-actively in the quota market. (C) 2003 Elsevier Inc. All rights reserved.
引用
收藏
页码:682 / 704
页数:23
相关论文
共 32 条
[1]   UNCERTAINTY AND CHOICE OF POLLUTION-CONTROL INSTRUMENTS [J].
ADAR, Z ;
GRIFFIN, JM .
JOURNAL OF ENVIRONMENTAL ECONOMICS AND MANAGEMENT, 1976, 3 (03) :178-188
[2]  
[Anonymous], 1990, GUIDE PRIMARY COMMOD
[3]  
[Anonymous], 1988, THEORY ENV POLICY, DOI DOI 10.1017/CBO9781139173513
[4]  
[Anonymous], J COMP EC
[5]  
BABCOCK BA, 1990, AM J AGR ECON, V72, P178
[6]  
BALDURSSON FM, 1998, 9 U OSL DEP EC
[7]  
Baron D., 1970, INT ECON REV, V11, P463
[8]   OPTION VALUE OF EMISSION ALLOWANCES [J].
CHAO, HP ;
WILSON, R .
JOURNAL OF REGULATORY ECONOMICS, 1993, 5 (03) :233-249
[9]  
Cole DH, 1999, WISC LAW REV, P887
[10]  
Dixit K., 1994, INVESTMENT UNCERTAIN