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types of instruments interact involves whether or not the cap-and-trade permit price would induce more or less abatement … regulations suggests we are more likely to overestimate the costs of cap-and-trade, and therefore the price of carbon permits …
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. Depending on abatement costs, output price sensitivity, and permit allocation, these effects may vary considerably across … industries and firms. We run an event study of the carbon price crash on April 25, 2006 by examining the daily stock returns for …
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"While economic models have already proven useful to analyze big picture questions about climate policy such as the choice between a carbon tax or cap-and-trade permit system, the 19 chapters in this book show how economic models also are useful to address the many remaining smaller questions...
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