On efficiency grounds, the economics community has to date tended to emphasize price-based policies to address climate change -- such as taxes or a quot;safety-valvequot; price ceiling for cap-and-trade -- while environmental advocates have sought a more clear quantitative limit on emissions....

Using a simple analytical model incorporating benefits of a stock, costs of adjusting the stock, and uncertainty in costs, we uncover several important principles governing the choice of price-based policies (e.g., taxes) relative to quantity-based policies (e.g., tradable permits) for...

Using a simple analytical model incorporating benefits of a stock, costs of adjusting the stock, and uncertainty in costs, we uncover several important principles governing the choice of price-based policies (e.g., taxes) relative to quantity-based policies (e.g., tradable permits) for...

A sizeable number of papers beginning with Roberts and Spence (1976) have studied the use of price floors and ceilings (or "collars") to manage prices in tradable permit markets. In contrast, economists have only recently begun examining polices to manage quantities under a pollution tax....

This paper considers how policy updates and trading of regulated quantities over time changes the traditional comparative advantage of prices versus quantities. Quantity regulation that can be traded over time leads firms to set current prices equal to expected future prices. A government...