Seminario: "What´s the cost of regulating the environment? Aggregate implications of cap-and-trade programs"

Autor(es): Evangelina Dardati (Universidad Alberto Hurtado) y Mereyem Saygili (University of Texas at Tyler) Presenta: Evangelina Dardati Lugar y hora: Miércoles 31 de Mayo de 2017, 13:00 hrs. Sala P 301, Edificio Placa (Diagonal Paraguay 257)
We quantify the long-run effects on output, aggregate TFP and welfare of alternative permit allocation schemes of a cap-and-trade program. We use a firm dynamics model with heterogeneous firms and add an emission market with a cap-and-trade regulation. We calibrate the model with establishment and emission data in the US and study three permit allocation methods: auctions, output-based-allocation and grandfathering. A 30% reduction in emissions is associated with a welfare cost that is highest for auctioning (3.3%), followed by grandfathering ($.9%) and, finally, output-based allocation (1.8%). When we introduce an abatement technology, the cost is smaller for all three alternatives, but, unlike the previous case, grandfathering gives the lowest welfare cost.

Datos del Evento

Fecha de inicio:
31 de Mayo, 2017 | 13:00 hrs.

Fecha de término
31 de Mayo, 2017 | 14:00 hrs.