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| Author: | Malueg, D.A. Yates, A.J. |
| Title: | Citizen participation in pollution permit markets |
| Journal: | Journal of Environmental Economics and Management
2005 : MAR, VOL. 51:2, p. 205-217 |
| Index terms: | participation pollution |
| Freeterms: | lobbying pollution permit market |
| Language: | eng |
| Abstract: | This paper discusses whether citizens should lobby the government to reduce pollution permit endowments or should they participate directly in the market by purchasing and retiring permits? The authors address this question in a two-stage model. In the first stage firms and citizens exert effort to influence the endowment of permits. In the second stage firms, and perhaps citizens, participate in the permit market. Even when citizens choose not to purchase permits, the possibility of doing so may affect the equilibrium. In this basic model, citizens choose not to purchase permits; this result can be reserved if permits are grandfathered. |
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