Total Quantity Control, Interregional Allocation of Emission Permits and Economic Performance
Read
DownLoad |
| Title | Total Quantity Control, Interregional Allocation of Emission Permits and Economic Performance
|
| Author | Qiao Xiaonan and Duan Xiaogang |
| Organization | Economic Department, Nankai University |
| Email | xiaonan.qiao@yahoo.com.cn；duanxg0303@163.com |
| Key Words | Total Quantity Control; Interregional Allocation of Emission Permits; Economic Performance |
| Abstract | Total quantity control is the basic system of reducing the emissions of pollutants in our country. The allocation of emission permits among different regions under the total quantity control can influence economic performance both in the whole country and different regions. By establishing an economic model and recursive simulation, this paper compares the social welfare principle, value principle, grandfathering principle and the principle of fairness, and further analyses how four kinds of allocation principles influence economic performance. By establishing an economic model and recursive simulation, this paper analyses how allocation of emission permits can influence economic performance. The results show that allocating more emission permits to the region whose enterprise has technical advantages will help to improve the enterprises’ total profit, but will wide regional gap, otherwise, it will promote consumer welfare level, increase total tax revenue and narrow the gap between the regions, but the enterprises’ total profit will decline. Therefore, the central government needs to consider the interests of all parties, and balance the overall efficiency and interregional fairness. Further study shows that the central government can solve the fairness problem by providing central financial transfer payment to the region lagging behind in technology and it will improve the social welfare further. |
| Serial Number | WP307 |
| Time | 2012-08-06 |
|