Auction design and the market for sulfur dioxide emissions
Author(s)
Joskow, Paul L.; Schmalensee, Richard; Bailey, Elizabeth M.![Thumbnail](/bitstream/handle/1721.1/50221/35721634.pdf.jpg?sequence=51&isAllowed=y)
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Other Contributors
Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research.
Metadata
Show full item recordAbstract
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.
Date issued
1996Publisher
MIT Center for Energy and Environmental Policy Research
Other identifiers
96007
Series/Report no.
MIT-CEEPR (Series) ; 96-007WP.