Browsing Working Papers by Author "Ellerman, A. Denny"
Now showing items 1-20 of 30
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1996 update on compliance and emissions trading under the U.S. acid rain program
(MIT Center for Energy and Environmental Policy Research, 1998)November 1997This paper reports on the second year of compliance with the sulfur dioxide (SO2) emissions-reduction and -trading provisions of the Title IV of the 1990 Clean Air Act Amendments (CAAA). The material is intended ... -
The allocation of European Union allowances : lessons, unifying themes and general principles
(MIT Center for Energy and Environmental Policy Research, 2006)On January 1st, 2005, the EU Emissions Trading Scheme (EU ETS) scheme was officially launched, only two years after the European Council adopted the EU Emissions Trading Directive (European Community 2003). As a consequence ... -
Analysis of the Bush proposal to reduce the SO₃ cap
(MIT Center for Energy and Environmental Policy Research, 2002)This paper evaluates President Bush's recent proposal to reduce the cap on total SO2 emissions using a model of emissions banking that fits the experience so far under Title IV. It provides a brief introduction to emissions ... -
Are cap-and-trade programs more environmentally effective than conventional regulation?
(MIT Center for Energy and Environmental Policy Research, 2003)This paper considers the evidence and possible reasons that cap-and-trade programs are more effective in meeting environmental objectives than conventional prescriptive regulation. The evidence is based mostly, but not ... -
CO2 Abatement in the UK Power Sector: Evidence from the EU ETS Trial Period
(2008)This paper provides an empirical assessment of CO2 emissions abatement in the UK power sector during the trial period of the EU ETS. Using an econometrically estimated model of fuel switching, it separates the impacts of ... -
The competition between coal and natural gas : the importance of sunk costs
(MIT Center for Energy and Environmental Policy Research, 1996)This paper explores the seeming paradox between the predominant choice of natural gas for capacity additions to generate electricity in the United States and the continuing large share of coal in meeting incremental ... -
Compliance Behavior in the EU-ETS: Cross Border Trading, Banking and Borrowing
(2008)This paper exploits a little used data resource within the central registry of the European Union’s Emissions Trading System (EU ETS) to analyze cross border flows of allowances for compliance purposes during the first ... -
Considerations for designing a tradable permit system to control SO₂ emissions in China
(MIT Center for Energy and Environmental Policy Research, 2001)As China's economy has grown, atmospheric pollution has become a greater problem and a matter of increasing concern to policymakers at all levels of government. One of the principal pollutants has been sulfur dioxide (SO2), ... -
The cost of reducing utility S02 emissions : not as low as you might think
(MIT Center for Energy and Environmental Policy Research, 1998)A common assertion in public policy discussions is that the cost of achieving the SO2 emissions reductions under the acid rain provisions of the Clean Air Act ("Title IV") has been only one-tenth or less of what Title IV ... -
Designing a US Market for CO2
(2009)In this paper we focus on one component of the cap-and-trade system: the markets that arise for trading allowances after they have been allocated or auctioned. The efficient functioning of the market is key to the success ... -
The effects of interactions between federal and state climate policies
(MIT Center for Energy and Environmental Policy Research, 2008)In the absence of a federal policy to cap carbon emissions many states are moving forward with their own initiatives, which currently range from announcements of commitments to reduce greenhouse gases to a regional multi-state ... -
The efficiency and robustness of allowance banking in the U.S. Acid Rain Program
(MIT Center for Energy and Environmental Policy Research, 2005)This paper provides an empirical evaluation of the efficiency of allowance banking (i.e., abating more in early periods in order to abate less in later periods) in the nationwide market for sulfur dioxide (SO2) emission ... -
Electric utility response to allowances : from autarkic to market-based compliance
(MIT Center for Energy and Environmental Policy Research, 1998) -
The European carbon market in action : the first trading period, Interim report
(MIT Center for Energy and Environmental Policy Research, 2008)The European Union Emissions Trading Scheme (EU ETS) is the largest greenhouse gas market ever established. The European Union is leading the world's first effort to mobilize market forces to tackle climate change. A precise ... -
The EU’s Emissions Trading Scheme: A Proto-Type Global System?
(2008)The European Union's Emission Trading Scheme (EU ETS) is the world's first multinational cap-and-trade system for greenhouse gases. As an agreement between sovereign nations with diverse historical, institutional, and ... -
Ex post evaluation of tradable permits : the U.S. SO₂ cap-and-trade program
(MIT Center for Energy and Environmental Policy Research, 2003)The U.S. SO2 cap-and-trade program was established as a result of the enactment of the 1990 Clean Air Act Amendments (1990 CAAA) under the authority granted by Title IV, which included several measures to reduce precursor ... -
Explaining low sulfur dioxide allowance prices : the effect of expectation errors and irreversibility
(MIT Center for Energy and Environmental Policy Research, 1998)The low price of allowances has been a frequently noted featured of the implementation of the sulfur dioxide emissions market of the U.S. Acid Rain Program. This paper presents theoretical and numerical analyses that explain ... -
Grandfathering and the Endowment Effect An Assessment in the context of the Spanish National Allocation Plan
(2008)In this paper, we test the Coase theorem in the context of carbon emissions trading. We investigate whether generating firms were influenced in their operational decisions by the initial amount of grandfathered emissions ... -
Lessons from Phase 2 compliance with the U.S. Acid Rain Program
(MIT Center for Energy and Environmental Policy Research, 2003)This paper provides preliminary answers to four questions concerning the behavior of agents operating under the SO2 Allowance Trading Program that could not be adequately answered until several years' data on compliance ... -
Natural gas pricing in the Northeastern U.S.
(MIT Center for Energy and Environmental Policy Research, 1998)This paper examines natural gas pricing at five citygate locations in the northeastern United States using daily and weekly price series for the years 1994-97. In particular, the effects of the natural gas price at Henry ...
