This article first describes the new literature in environmental economics on the so-called “double-dividend” and then explores its implications for a broad range of economic issues. This literature reveals that in a second-best, general-equilibrium setting, environmental measures raise...

Environmental markets have several institutional features that provide a new context for the use of auctions and that have not been studied previously. This paper reports on laboratory experiments testing three auction forms-uniform and discriminatory price sealed-bid auctions and an ascending...

Most previous cap and trade programs have distributed emission allowances for free to incumbent producers. However, in the electricity sector the value of CO<INF>2</INF> allowances may be far in excess of costs to industry and giving them away to firms diverts allowance value from other purposes. Using a...</inf>