Carbon
Take your way
two ways to reduce carbon 1. carbon tax 2. carbon cap and trade
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Weak carbon reductions.
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customer surplus vs pollution tradeoff
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focusing on permit allocation mechanism
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free permit allocation mechanism: grandfather/ benchmarking
lumpsum 一次性支付的金额 customer surplus: 愿意支付的金额与市场价格之差
heterogeneous convex abatement 减少
Literature: Pollution regulation of competitive markets 2020
Cournot competition
a single compliance cycle
permit trading cost(revenue):