Montero, Juan-Pablo
November 1998
Journal of Applied Economics;Nov1998, Vol. 1 Issue 2, p363
Academic Journal
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.


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