The contribution of aviation to global carbon dioxide (CO2) emissions is projected to triple by 2050. As nations strive to meet CO2 reduction targets, policy interventions to manage the growth of emissions arising from air travel are likely. Here, we investigate the potential influence of...

In this paper we advocate a new initial allocation mechanism for a tradable pollution permit market. We outline a Permit Allocation Contest (PAC) that distributes permits to firms based on their rank relative to other firms. This ranking is achieved by ordering firms based on an observable...