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Auction Design and the Market for Sulfur Dioxide Emissions / Paul L. Joskow, Richard Schmalensee, Elizabeth M. Bailey.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Joskow, Paul L.
Contributor:
National Bureau of Economic Research.
Schmalensee, Richard.
Bailey, Elizabeth M.
Series:
Working Paper Series (National Bureau of Economic Research) no. w5745.
NBER working paper series no. w5745
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 1996.
Summary:
Title IV of the Clean Air Act Amendments of 1990 created a market for electric utility emissions of sulfur dioxide (SO2). Recent papers have argued that flaws in the design of the auctions that are part of this market have adversely affected its performance. These papers incorrectly assume that trade can only occur at auctions, however. Our empirical analysis of the SO2 emissions market shows that the auctions have become a small part of a relatively efficient market and that the auction design problems that have attracted the most attention have had no effect on actual market prices
Notes:
Print version record
September 1996.

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