A symmetric safety valve

被引：85

作者：

Burtraw, Dallas ^{[1
]}

Palmer, Karen ^{[1
]}

Kahn, Danny ^{[1
]}

机构：

[1] Resources Future Inc, Washington, DC 20036 USA

来源：

ENERGY POLICY | 2010年 / 38卷 / 09期

关键词：

Climate change; Cost management; Cap and trade; COST; UNCERTAINTY; ECONOMICS; RESERVE;

D O I：

10.1016/j.enpol.2010.03.068

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

How to set policy in the presence of uncertainty has been central in debates over climate policy. Concern about costs has motivated the proposal for a cap-and-trade program for carbon dioxide, with a "safety valve" that would mitigate against spikes in the cost of emission reductions by introducing additional emission allowances into the market when marginal costs rise above the specified allowance price level. We find two significant problems, both stemming from the asymmetry of an instrument that mitigates only against a price increase. One is that most important examples of price volatility in cap-and-trade programs have occurred not when prices spiked, but instead when allowance prices collapsed. Second, a single-sided safety valve may have unintended consequences for investment. We illustrate that a symmetric safety valve provides environmental and welfare improvements relative to the conventional one-sided approach. (C) 2010 Elsevier Ltd. All rights reserved.

引用

页码：4921 / 4932

页数：12

共 41 条

[1]

[Anonymous], SOFT HARD PRICE COLL

[2]

[Anonymous], 1998, The Theory of environmental policy, DOI DOI 10.1017/CBO9781139173513

[3] Vickrey auctions with reserve pricing [J].