It is generally understood that allowance or credit trade under first-best policies that limit carbon dioxide (CO2) emissions reduces the overall cost of compliance. However, using the trading options available under EPA's Clean Power Plan (CPP) as an example, we demonstrate that the magnitude...

Using commodity futures contract and spot prices, we estimate the incidence of the US ethanol subsidy accruing to corn farmers, ethanol producers, gasoline blenders, and gasoline consumers at expiration in 2011. We find compelling evidence that ethanol producers captured two-thirds of the...

Epidemiologists have documented both acute short-term and chronic long-term damages associated with exposure to air pollution, while atmospheric scientists have demonstrated that air pollution exposure depends on meteorological conditions, which are stochastic. We analyze the implications of...

Using commodity futures contract and spot prices, we estimate the incidence of the US ethanol subsidy accruing to corn farmers, ethanol producers, gasoline blenders, and gasoline consumers at expiration in 2011. We find compelling evidence that ethanol producers captured two-thirds of the...

The Environmental Protection Agency (EPA) recently finalized regulations for carbon dioxide (CO2) emissions from existing fossil fuel power plants in the form of the Clean Power Plan. One interesting feature of the rule is that it imposes different CO2 emission rate standards on coal and natural...