Cap and Trade, Rehabilitated: Using Tradable Permits to Control U.S. Greenhouse Gases

Keohane, Nathaniel O.

doi:10.1093/reep/ren021

Cited by 136 publications

(61 citation statements)

References 36 publications

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“…With respect to economic risks, taxes are similar to permits with price corridors, and both dominate straight targets. In a recent defence of emissions trading, Nathaniel Keohane (2009) notes, however, that taxes may focus the public debate on the cost of abatement, while quantitative targets may focus it on the 'cap' or the environmental necessity of addressing the threat of climate change. Hopefully price caps could be less prone to such a psychological effect, as they would be part of hybrid instruments together with emission targets and price floors (which may help avoid a cap on the marginal abatement cost being mistaken for a cost).…”

Section: Discussionmentioning

confidence: 99%

Assessing the value of price caps and floors

Philibert

2009

Climate Policy

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Section: Discussionmentioning

confidence: 99%

Assessing the value of price caps and floors

Philibert

2009

Climate Policy

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“…There has been a hot debate between C&T and carbon tax scheme [11][12][13][14]. Some argued that the carbon tax is easy to carry out since it does not require trading platforms.…”

Section: Introductionmentioning

confidence: 99%

“…Moreover, it provides a price signal that stimulates emitters to seek long-term solutions such as investing on renewable generation sources [12]. But others insists that C&T has some distinctive advantages over a carbon tax, such as international fairness, broad participation, and most important, direct regulation on the total quantity of emissions [11]. It's worth mentioning that a comprehensive bilevel optimization model was proposed in [14] to investigate and compare the C&T and carbon tax policies in terms of effectiveness and efficiency from a generation expansion planning perspective.…”

Section: Introductionmentioning

confidence: 99%

Taxing Strategies for Carbon Emissions: A Bilevel Optimization Approach

et al. 2014

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This paper presents a quantitative and computational method to determine the optimal tax rate among generating units. To strike a balance between the reduction of carbon emission and the profit of energy sectors, the proposed bilevel optimization model can be regarded as a Stackelberg game between the government agency and the generation companies. The upper-level, which represents the government agency, aims to limit total carbon emissions within a certain level by setting optimal tax rates among generators according to their emission performances. The lower-level, which represents decision behaviors of the grid operator, tries to minimize the total production cost under the tax rates set by the government. The bilevel optimization model is finally reformulated into a mixed integer linear program (MILP) which can be solved by off-the-shelf MILP solvers. Case studies on a 10-unit system as well as a provincial power grid in China demonstrate the validity of the proposed method and its capability in practical applications.

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“…However, the others believe that the carbon emissions right trading has more advantage, for it has many of advantages over cost-effectiveness, broad participation, fairness and equity between different countries, and being favor to control cumulative emissions. Relatively speaking, the carbon tax in these areas is inadequate [5], [6].…”

Section: Introductionmentioning

confidence: 99%

Policy Design and Implementation Issues of Regulating Greenhouse Gas Emissions in China

Dou¹,

Xie²,

Ye³

2013

IJESD

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Abstract-The basic policy tools to regulate greenhouse gas emissions are the carbon taxes and the carbon emissions right trading. In theory, they have equivalents in the efficiency and effectiveness of carbon emissions reduction. However, due to the uncertainty of real world, so they no longer have theoretical equivalent, but difference. Therefore, it is necessary on the basis of the reality of socio-economic development and changes to choice and implement the most effective policy instruments. In the selection and design of specific policies, the diversification, stability and dynamic adjustment of policy objectives, the balance and coordination between international policies, as well as the interaction and coordination between different polices, should fully be considered.Index Terms-Greenhouse gas emissions, policy instruments, carbon tax, carbon emissions right trading, uncertainty.

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Cap and Trade, Rehabilitated: Using Tradable Permits to Control U.S. Greenhouse Gases

Cited by 136 publications

References 36 publications

Assessing the value of price caps and floors

Assessing the value of price caps and floors

Taxing Strategies for Carbon Emissions: A Bilevel Optimization Approach

Policy Design and Implementation Issues of Regulating Greenhouse Gas Emissions in China

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