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{"id":3365,"date":"2013-02-21T09:43:06","date_gmt":"2013-02-21T09:43:06","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&p=3365"},"modified":"2024-08-19T14:32:00","modified_gmt":"2024-08-19T13:32:00","slug":"emissions-trading-with-profit-neutral-permit-allocations","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/emissions-trading-with-profit-neutral-permit-allocations\/","title":{"rendered":"Emissions trading with profit-neutral permit allocations"},"content":{"rendered":"\n

Abstract<\/h3>\n
This paper examines the impact of an emissions trading scheme (ETS) on equilibrium emissions, output, price, market concentration, and profits in a generalized Cournot model. We develop formulae for the number of emissions permits that have to be freely allocated to firms to neutralize the profit impact of the ETS. We show that its profit impact is usually limited: in a Cournot oligopoly with constant marginal costs, total industry profits are preserved so long as freely allocated permits cover a fraction of initial emissions that does not exceed the industry’s Herfindahl index.<\/p>\n

Reference<\/h3>\n
Hepburn, C.J., Quah, J.K.H., Ritz, R.A. February 2013. Emissions trading with profit-neutral permit allocations<\/em>. Journal of Public Economics, v.98, pp.85-99.<\/p>\n\n","protected":false},"excerpt":{"rendered":"\n
Abstract This paper examines the impact of an emissions trading scheme (ETS) on equilibrium emissions, output, price, market concentration, and…<\/p>\n\n","protected":false},"author":43,"featured_media":0,"template":"","tags":[166,98],"publication-type":[436],"topic_area":[4694],"class_list":["post-3365","publication","type-publication","status-publish","hentry","tag-carbon-markets","tag-eu-ets","publication-type-research-articles","topic_area-policy-evaluation"],"acf":{"downloads":{"ref_value":"field_52f16cc1a80f2","value":false,"type":"repeater","post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["cameron-hepburn"],"type":"relationship","post_type":"profile"},"article_link":{"ref_value":"field_52eee3c7f0586","value":"https:\/\/www.sciencedirect.com\/science\/article\/pii\/S0047272712001120","type":false,"post_type":""},"article_link_title":{"ref_value":"field_5322399d89d42","value":"Journal of Public Economics. Volume 98, February 2013, Pages 85\u201399","type":false,"post_type":""},"spotlight":{"ref_value":"field_52f80896506d3","value":"","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":"\nEmissions trading with profit-neutral permit allocations - 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\/emissions-trading-with-profit-neutral-permit-allocations\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Emissions trading with profit-neutral permit allocations - Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"og:description\" content=\"Abstract This paper examines the impact of an emissions trading scheme (ETS) on equilibrium emissions, output, price, market concentration, and...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/emissions-trading-with-profit-neutral-permit-allocations\/\" \/>\n<meta property=\"og:site_name\" content=\"Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-19T13:32:00+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/emissions-trading-with-profit-neutral-permit-allocations\\\/\",\"url\":\"https:\\\/\\\/www.lse.ac.uk\\\/granthaminstitute\\\/publication\\\/emissions-trading-with-profit-neutral-permit-allocations\\\/\",\"name\":\"Emissions trading with profit-neutral permit allocations - 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