The determinants of credit allocations in a market-based trading system: Evidence from the RECLAIM program

Antonio M. Bento, Emeric Henry, Scott E. Lowe

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

This paper examines the determinants of emission credit allocations under the Regional Clean Air Incentives Market (RECLAIM) -a program aimed at reducing nitrogen oxides (NOX) and sulfur oxides (SOX)-in the greater Los Angeles area. Our results suggest that deviations in the allocation of emission credits can be systematically explained by firm-level factors and the location of the facility. Our results also indicate that deviations in the allocation of emission credits may have been made in an attempt to regulate toxics, and that certain industries were protected in the early stages of the program.

Original languageEnglish
Pages (from-to)51-80
Number of pages30
JournalReview of Regional Studies
Volume43
Issue number1
StatePublished - 2013

Keywords

  • Air pollution
  • Distributional impacts
  • Market-based permits
  • NO
  • Regional Clean Air Incentives Market (RECLAIM)

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