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An Analysis and Recommendation for the Terms of the RECLAIM Trading Credit

Carlson, Dale and Forman, Charles and Olmstead, Nancy and Ledyard, John O. and Plott, Charles R. and Porter, David P. and Sholtz, Anne (1993) An Analysis and Recommendation for the Terms of the RECLAIM Trading Credit. South Coast Air Quality Management District , Diamond Bar, CA.

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The South Coast Air Quality Management District (AQMD) has proposed an annual RECLAIM Trading Credit (RTC) with uniform issue and compliance dates as the trading instrument for its market-based regulatory program. The proposed design for this instrument carries potential problems for both RECLAIM facilities and AQMD, including market imbalances, price volatility, economic inefficiencies, and an increase in ambient emission peaks. These problems result directly from the design of the instrument, and they can be alleviated through the selection of alternate design variables and a change in the allocation of RTCs to RECLAIM facilities. Both the problems and the effectiveness of the solutions have been tested and documented in experiments conducted in the Laboratory for Experimental Economics and Political Science at the California Institute of Technology.

Item Type:Report or Paper (Report)
Additional Information:Contract No. R-C93074. April 27, 1993.
Record Number:CaltechAUTHORS:20140401-152938560
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Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:44592
Deposited On:28 Oct 2014 22:57
Last Modified:03 Oct 2019 06:19

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