Publications
Environmental economics and modelling marketable permits
We review fundamental concepts in environmental economics and explore theoretical results regarding the choice of the key policy instruments for the control of externalities: taxes, subsidies … read more »
Environmental prices, uncertainty and learning
There is an increasing demand for putting a shadow price on the environment to guide public policy and incentivize private behaviour. In practice, setting that price can be extremely … read more »
Designing carbon markets. Part I: carbon markets in time
This paper analyses the design of carbon markets in time (i.e., intertemporally). It is part of a twin set of papers that ask, starting from first principles, what an … read more »
The real option to fuel switch in the presence of expected windfall profits under the EU Emission Trading Scheme
This paper develops a simple model to evaluate the value and the activation frequencies of a generation system consisting of coal-fired and a gas-fired power plants using a real … read more »
A Lockean defence of grandfathering emission rights
Reference Bovens, L. 2010. A Lockean defence of grandfathering emission rights (forthcoming). The Ethics of Global Climate Change [Denis Arnold (ed.)]. Cambridge University Press, Cambridge.
The economics of the CDM levy: revenue potential, tax incidence and distortionary effects
A levy on the Clean Development Mechanism and other carbon trading schemes is a potential source of finance for climate change adaptation. An adaptation levy of 2% is currently … read more »
Pricing and hedging in carbon emission markets
We propose a model for trading in emission allowances in the EU Emission Trading Scheme (ETS). Exploiting an arbitrage relationship we derive the spot prices of carbon allowances given … read more »
Properly designed emissions trading schemes do work!
Emissions trading markets have been touted as the most efficient mechanism to achieve environmental goals at least cost. Whether in the form of voluntary markets or … read more »
The carbon market in 2020: volumes, prices and gains from trade
Carbon markets are central to the global effort to reduce greenhouse gas emissions. We introduce a new carbon market model that aims to simulate the development … read more »
