An Optimal Ad Valorem Tax/Subsidy with an Output-Based Refunded Emission Payment for Permits Auction in an Oligopoly Market

作者：Yu Yuanguang^*

来源：Environmental and Resource Economics, 2012, 52(2): 235-248.

DOI：10.1007/s10640-011-9526-2

• Ad valorem tax
• Output-based refunded emission payment
• Uniform price auction
• Underpricing

In this paper, we explores a hybrid mechanism of output-based refunded emission payment and an ad valorem tax/subsidy to remove the distortions emerging in the permit auction market and the product market. We find that first best outcomes can be achieved under such a hybrid mechanism. A clearing price equal to a Pigouvian tax will endogenously result in the permit auction market. Moreover, we extend the analysis to take into consideration the investment in abatement technology.

• 出版日期2012-6
• 单位西安交通大学