Emissions Trading: ERCs or Allowances?
比较了基于减排信用和总量控制与交易两种排放交易体系对企业边际成本和平均成本的影响，发现总量控制与交易体系在效率上更优。
<i>Emissions trading takes place from two alternative baselines: 1) emission reduction credits (ERCs) in which the baseline is existing regulations which are often activity-based; or 2) cap-and-trade which specifies the total allowable emissions. This paper examines the effects of these two tradable permit systems on marginal and average costs for the firm, using electricity generation as an example. The ERC system subsidizes the activity level to which it is tied and fails to incorporate the full cost of external harm into the product price. If the permit limit is chosen efficiently, the cap-and-trade system is more efficient.</i>