Impacts of Alternative Emissions Allowance Allocation Methods under a Federal Cap-and-Trade Program

Lawrence H. Goulder, Marc A. C. Hafstead, Michael S. Dworsky

This paper examines the implications of alternative allowance allocation designs under a federal cap-and-trade program to reduce emissions of greenhouse gases. We focus on the impacts on industry profits and overall economic output, employing a dynamic general equilibrium model of the U.S. economy. The model's unique treatment of capital dynamics permits close attention to profit impacts

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Year of publication:	August 2009
Authors:	Goulder, Lawrence H.
Other Persons:	Hafstead, Marc A. C. (contributor) ; Dworsky, Michael S. (contributor)
Institutions:	National Bureau of Economic Research (contributor)
Publisher:	Cambridge, Mass : National Bureau of Economic Research
Subject:	Treibhausgas-Emissionen \| Greenhouse gas emissions \| Klimawandel \| Climate change \| Umweltpolitik \| Environmental policy \| Emissionshandel \| Emissions trading \| Auktion \| Auction \| Bruttoinlandsprodukt \| Gross domestic product \| Gewinn \| Profit \| Steuersenkung \| Tax cut
Description of contents:	Our results are robust to cap-and-trade policies that differ according to policy stringency, the availability of offsets, and the extent of opportunities for intertemporal trading of allowances

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