Measuring Windfall Profits to Coal-Fired Electricity Generators from Free Emission Permit Allocations

2021 ◽  
Author(s):  
Alastair Fraser ◽  
Jonathan Chiew Sheen Kuok ◽  
Gordon Leslie
Keyword(s):  
Emission Permit

A decision aid tool for equity issues analysis in emission permit allocations

2006 ◽  
Vol 5 (5) ◽  
pp. 487-501 ◽  
Author(s):  
Kathleen Vaillancourt ◽  
Jean-Philippe Waaub
Keyword(s):  
Decision Aid ◽  
Equity Issues ◽  
Emission Permit

Equilibrium Price Dynamics of Emission Permits

2018 ◽  
Vol 53 (4) ◽  
pp. 1653-1678 ◽  
Author(s):  
Steffen Hitzemann ◽  
Marliese Uhrig-Homburg
Keyword(s):  
Option Pricing ◽  
Empirical Evidence ◽  
Equilibrium Model ◽  
Equilibrium Price ◽  
Contingent Claims ◽  
Emission Permits ◽  
Emission Permit ◽  
Environmental Markets ◽  
Forward Price ◽  
Highly Nonlinear

This article presents a stochastic equilibrium model for environmental markets that allows us to study the characteristic properties of emission permit prices induced by the design of today’s cap-and-trade systems. We characterize emission permits as highly nonlinear contingent claims on economy-wide emissions and reveal their hybrid nature between investment and consumption assets. Our model makes predictions about the dynamics and volatility structure of emission permit prices, the forward price curve, and the implications for option pricing in this market. Empirical evidence from existing emissions markets shows that the model explains the stylized facts of emission permit prices and related derivatives.

Do pollution havens restrict tourism-led growth? Achieving sustainable tourism via a mix of environmental and tourism policies

2019 ◽  
Vol 26 (7) ◽  
pp. 1175-1196
Author(s):  
Yoshihiro Hamaguchi
Keyword(s):  
Growth Rate ◽  
Growth Model ◽  
Environmental Quality ◽  
Rate Increase ◽  
Sustainable Tourism ◽  
International Tourism ◽  
Location Choices ◽  
Emission Permit ◽  
Polluting Firms ◽  
Pollution Havens

Using an R&D-based growth model with endogenous location choices and movement of tourists, we investigate the effect that a grandfathered emission permit and an airfare including alien tax have on international tourism. We find that improved environmental quality, achieved by the restricted allocation of grandfathered permits, leads to tourism-led growth. That is, both the number of tourists and the tourism growth rate increase. By contrast, we find that worsened environmental quality, caused by generous allocation of grandfathered permits and reduced airfares including alien tax, leads to the creation of pollution havens because the policy prompts polluting firms to relocate to the area with the respective regulations. Our findings imply sustainable tourism can be achieved when the respective environmental and tourism policies are implemented.

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