Environmental markets have several institutional features that provide a new context for the use of auctions and which 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...

Objective – This chapter examines the performance of the market to discover efficient equilibrium under alternative auction designs. Background – Auctions are increasingly being used to allocate emissions allowances (“permits”) for cap and trade and common-pool resource management...