{"id":3124,"date":"2011-01-19T16:04:47","date_gmt":"2011-01-19T16:04:47","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&#038;p=3124"},"modified":"2024-08-19T14:33:30","modified_gmt":"2024-08-19T13:33:30","slug":"cap-and-trade-properties-under-different-hybrid-scheme-designs-2011","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/cap-and-trade-properties-under-different-hybrid-scheme-designs-2011\/","title":{"rendered":"Cap-and-trade properties under different hybrid scheme designs"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><h3>Abstract<\/h3>\n<p>This paper examines the key design mechanisms of existing and proposed cap-and-trade markets. First, it is shown that the hybrid systems under investigation (price floor using a minimum price guarantee, price collar, allowance reserve, options offered by the regulator, and offset relaxation) can be decomposed into a combination of an ordinary cap-and-trade scheme with European- or American-style call and put options. Then, we quantify and discuss the advantages and disadvantages of the proposed hybrid schemes by investigating whether pre-set objectives (enforcement of permit price bounds and reduction of the compliance costs for relevant companies) can be accomplished while maintaining the original environmental targets. Plain vanilla options are proposed as an alternative that reconciles the otherwise conflicting policy objectives.<\/p>\n<h3>Reference<\/h3>\n<p>Gr&uuml;ll G., and Taschini, L. January 2011. <em>Cap-and-trade properties under different hybrid scheme designs<\/em>. Journal of Environmental Economics and Management, v.61, pp.107-118.<\/p>\n\n","protected":false},"excerpt":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>Abstract This paper examines the key design mechanisms of existing and proposed cap-and-trade markets. First, it is shown that the&hellip;<\/p>\n\n","protected":false},"author":43,"featured_media":0,"template":"","tags":[188],"publication-type":[436],"topic_area":[4694],"class_list":["post-3124","publication","type-publication","status-publish","hentry","tag-cap-and-trade","publication-type-research-articles","topic_area-policy-evaluation"],"acf":{"downloads":{"ref_value":"field_52f16cc1a80f2","value":false,"type":"repeater","post_type":""},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["luca-taschini"],"type":"relationship","post_type":"profile"},"article_link":{"ref_value":"field_52eee3c7f0586","value":"https:\/\/dx.doi.org\/10.1016\/j.jeem.2010.09.001","type":false,"post_type":""},"article_link_title":{"ref_value":"field_5322399d89d42","value":"Journal of Environmental Economics and Management.Volume 61, Issue 1, January 2011, Pages 107\u2013118","type":false,"post_type":""},"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Cap-and-trade properties under different hybrid scheme designs - Grantham Research Institute on climate change and the environment<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/cap-and-trade-properties-under-different-hybrid-scheme-designs-2011\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cap-and-trade properties under different hybrid scheme designs - Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"og:description\" content=\"Abstract This paper examines the key design mechanisms of existing and proposed cap-and-trade markets. 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