Compensation rules for climate policy in the electricity sector
Bibliographic Data
| ID | 11684170 |
|---|---|
| Authors | Dallas Burtraw (0000-0002-2119-6984, Resources For The Future, corresponding author), K Palmer (0000-0002-8946-3620, Resources For The Future) |
| Year | 2008 |
| Volume | 27 |
| Issue | 4 |
| Pages | 819-847 |
| Publication date | 2008-09-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Policy Analysis and Management (JOURNAL) |
| Journal identifiers | ISSN: 0276-8739 • E-ISSN: 1520-6688 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1002/pam.20378 |
| OpenAlex | W3125408395 |
| Language | EN |
| Citations received | 15 |
| References cited | 16 |
Most previous cap and trade programs have distributed emission allowances for free to incumbent producers. However, in the electricity sector the value of CO 2 allowances may be far in excess of costs to industry and giving them away to firms diverts allowance value from other purposes. Using a detailed simulation model, this paper shows that compensation to firms losing asset value under a climate cap and trade policy can be achieved for a small fraction of total allowance value, if targeted carefully. However, the economic efficiency cost of providing incremental compensation to reach the fully compensated level is many multiples of that incremental compensation. These considerations might move policymakers away from free allocation of CO 2 emission allowances in the electricity sector. © 2008 by the Association for Public Policy Analysis and Management
Allowance (engineering · Asset (computer security · Business · Climate change · Climate policy · Compensation (psychology · Economics · Electricity · Electricity market · Industrial organization · Microeconomics · Natural resource economics · Operations management · Value (mathematics · Climate Change Policy and Economics · Economic and Environmental Valuation · Engineering · Fiscal Policy and Economic Growth
The curious genealogy of stranded assets
Instrument Choice in Environmental Policy
Auction mechanisms for allocating subsidies for carbon emissions reduction
Lobbying for carbon permits in Europe
Lobbying for carbon permits in Europe
Historic versus output-based allocation of GHG tradable allowances
Collusion in auctions for emission permits
Intertemporal regulatory tasks and responsibilities for greenhouse gas reductions
Corporate response strategies to regulatory uncertainty
Ecological Compensation Strategy for SDG-Based Basin-Type National Parks
Two world views on carbon revenues
The Normative Implications of Political Decision-Making for Benefit-Cost Analysis
Fair allocation of wastewater discharge permits based on satisfaction criteria using data envelopment analysis
Short-Run Allocation of Emissions Allowances and Long-Term Goals for Climate Policy
Making Change
| Citations per year | 0.83 |
|---|---|
| Citation span | 2008 - 2026 (19) |
| Highly cited | No |