Dynamic Model of Common-pool Emission Permit Market as a Method for Solving the Persistent Pollutant Problem Cover Image

Dynamický model spoločného trhu s emisnými povoleniami ako spôsob riešenia problému znečisťovania perzistentnými látkami
Dynamic Model of Common-pool Emission Permit Market as a Method for Solving the Persistent Pollutant Problem

Author(s): Anetta Čaplánová, Rudolf Sivák, Keith Willett
Subject(s): Politics / Political Sciences, Social Sciences, Energy and Environmental Studies
Published by: Vysoká škola ekonomická v Praze
Keywords: environmental pollution policies; air pollution; emission permit trading; dynamic permit trading models; common-pool permit markets

Summary/Abstract: Dynamic Model of Common-pool Emission Permit Market as a Method for Solving the Persistent Pollutant Problem In the paper, we develop a common-pool permit market formulated as a dynamic gross pool for trading emission discharge permits (EDPs) for persistent pollutants. We discuss individual agents' demand decisions concerning EDPs and develop a common-pool market dynamic gross pool formulation, including a general set of marginal-cost pricing rules used in this type of permit trading market. Numerical simulations are used to illustrate the usefulness of this type of permit market design for addressing environmental problems.

  • Issue Year: 69/2021
  • Issue No: 3
  • Page Range: 273-297
  • Page Count: 25
  • Language: Slovak