Stranlund, John K.; Moffitt, L. Joe - In: Journal of Environmental Economics and Management 67 (2014) 1, pp. 20-38
This paper examines how enforcement affects the structure and performance of emissions trading programs with price … controls under uncertainty about firms' abatement costs. The analysis highlights how an enforcement strategy can cause … abatement-cost risk to be transmitted to enforcement costs via the price of permits. When this occurs, accommodating the effect …