TITLE

OPTIMAL OPT-IN "CLIMATE" CONTRACTS

AUTHOR(S)
Montero, Juan-Pablo
PUB. DATE
November 1998
SOURCE
Journal of Applied Economics;Nov1998, Vol. 1 Issue 2, p363
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The paper studies the design of a tradeable permit system with voluntarily opt-in possibilities for LDCs in the context of climate change. In setting the optimal opt-in rule, the social planner faces a trade-off between production efficiency (minimization of control costs) and information rent extraction (reduction of excess permits). Results from a simulation exercise based on data from MIT's EPPA model are also provided.
ACCESSION #
10022707

 

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