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This is of great political importance, because it means that in the presence of transaction costs, the initial distribution of permits can matter not only in terms of distributional equity, but in terms of cost-effectiveness or efficiency.
In a concession to sectors like steel, and to ease opposition from industries and political leaders in countries like France, the officials are expected to allow some free distribution of permits until 2020.
Revenue-neutral charges or gratis distribution of permits would, for this reason, be realistic choices of regulations.
Similar(57)
Moreover, considering the permit scheme may lead to an undesirable benefit distribution among commuters, we propose an equal cost-reduction distribution of parking permits where auto commuters with higher value of time will receive fewer permits.
And politicians would have an opportunity to control the number and distribution of emission permits and the flow of billions of dollars in subsidies and sweeteners.
Some economists and environmentalists have criticized the distribution of free permits as a handout to industry, noting that the European Union — which initially set up its trading system that way — saw the prices for pollution permits collapse.
Data presented in Figs 4, 5 and 6 show the distribution of work permits issued to India, the Philippines and South Africa by the United Kingdom.
In addition, knowledge of the distribution of subsea permafrost permits a thorough interpretation of regional geologic history.
Recently, he has been investigating the distribution of commercial-fishing permits in Alaska — Tlingits often have a hard time making a living from their ancestral waters.
Poland says the EU's distribution of CO2 emission permits is unfair because it uses gas-based benchmarks.
A judicious distribution of the scarce permits that targets the dual objectives of price efficiency and social diversity in vehicle ownership can however mitigate the controversy.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com