The US SO2 AUCTION: A policy recommendation for future auctions
Description
An annual discriminative and revenue-neutral auction is linked to the new Acid Rain Program which allows electric utilities all over the US to trade SO2 emission permits. This innovative SO2 auction distributes 2% of the permits in circulation and takes place at the Chicago Board of Trade. Early results showed that the auction generated a clearing price signal lower than the market price. Now the auction price seems to be determined by the outside market price. Still, in the important starting phase, a non-discriminative auction design would probably have generated better price signals since potentially severe downward biases in both seller price offers and buyer bids are due to the discriminative feature of the EPA auction. (au) 30 refs
Availability note (English)
Available from INIS in electronic form; ALSO AVAILABLE FROM OSTI AS DE99745216; NTIS
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Additional details
Publishing Information
- Imprint Pagination
- 20 p.
- Series
- Working Paper, 98-15
- ISSN
- 1397-4831
- Report number
- NEI-DK--3426
INIS
- Country of Publication
- Denmark
- Country of Input or Organization
- Denmark
- INIS RN
- 31004155
- Subject category
- S54: ENVIRONMENTAL SCIENCES; S29: ENERGY PLANNING, POLICY AND ECONOMY;
- Descriptors DEI
- ELECTRIC UTILITIES; EMISSION; ENVIRONMENTAL POLICY; PRICES; PROPOSALS; RECOMMENDATIONS; SULFUR DIOXIDE; TRADE; USA
- Descriptors DEC
- CHALCOGENIDES; DEVELOPED COUNTRIES; GOVERNMENT POLICIES; NORTH AMERICA; OXIDES; OXYGEN COMPOUNDS; PUBLIC UTILITIES; SULFUR COMPOUNDS; SULFUR OXIDES