Cap-and-Trade Programs Under Continual Compliance

Innovation under cap-and-trade programs.

Policies incentivizing the private sector to reach its innovative potential in "clean" technologies are likely to play a key role in achieving climate stabilization. This article explores the relationship between innovation and cap-and-trade programs (CTPs)--the world's most prominent climate policy instrument--through empirical evidence drawn from successful CTPs for sulfur dioxide and nitroge...

Cap-and-Trade Programs and Innovation for Climate Safety

Analysts generally agree that considerable technological innovation will be necessary to reduce greenhouse gas (GHG) emissions to “safe” levels while minimizing economic impacts. Market failures related to both environmental pollution and innovation reduce the likelihood that the private sector will provide that innovation without public intervention. Meanwhile, cap-and-trade programs (CTPs) fo...

Allocating Emissions Allowances - Under California's Cap-and-Trade Program

Sustainable Trade Credit and Replenishment Policies under the Cap-And-Trade and Carbon Tax Regulations

The paper considers the sustainable trade credit and inventory policies with demand related to credit period and the environmental sensitivity of consumers under the carbon cap-and-trade and carbon tax regulations. First, the decision models are constructed under three cases: without regulation, carbon cap-and-trade regulation, and carbon tax regulation. The optimal solutions of the retailer in...

Cap-and-Trade, Emissions Taxes, and Innovation

Emissions taxes and carbon caps can both lead to e cient production of energy, in the sense of controlling carbon emissions to the extent that is e cient with existing technologies. However, the regulatory policy has a second objective, which is to create incentives to develop lower-carbon technologies. With both objectives in mind, does one policy dominate the other? I address this question in...