Data and Code for: Dynamic Incentives and Permit Market Equilibrium in Cap-and-Trade Regulation

Principal Investigator(s): View help for Principal Investigator(s) Yuta Toyama, Waseda University

Name	File Type	Size	Last Modified
32_1_R_Construction_Production			11/21/2023 12:25:AM
33_1_R_Construction_Trading			11/21/2023 12:31:AM
34_1_R_Estimation_Step1			11/21/2023 01:04:AM
34_2_Implication_Production			11/21/2023 12:33:AM
34_3_R_Descriptive			11/21/2023 12:34:AM
34_4_R_Estimation_Step2			01/11/2024 01:26:AM
35_1_2_No_Banking_Between_P1P2			01/11/2024 01:27:AM
35_1_Cost_effective_NoTC			01/11/2024 01:30:AM
35_4_R_Simu_Summary			01/11/2024 01:34:AM
Data			05/14/2023 04:37:AM

Project Citation:

Toyama, Yuta. Data and Code for: Dynamic Incentives and Permit Market Equilibrium in Cap-and-Trade Regulation. Nashville, TN: American Economic Association [publisher], 2024. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2024-07-03. https://doi.org/10.3886/E191522V1

Project Description

Summary: This paper develops and estimates a dynamic structural model of emissions abatement, investment, and permit trading with banking under cap-and-trade regulation. The model accounts for forward-looking behavior and transaction costs in the permit market, which determine the temporal and geographical distribution of emissions in equilibrium, and, thus, the welfare implications of the regulation. The model is applied to the US Acid Rain Program to evaluate the role of regulatory designs. Permit banking mitigates inefficiencies arising from transaction costs and modifies the timing of emissions. An emissions tax policy could achieve an outcome close to dynamic cap-and-trade without transaction costs.

Scope of Project

Subject Terms: Structural estimation; environmental regulations; power plants; sulphur dioxide

JEL Classification:
      D22 Firm Behavior: Empirical Analysis
      L94 Electric Utilities
      Q52 Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
      Q58 Environmental Economics: Government Policy

Geographic Coverage: United States

Time Period(s): 1995 – 2003

Universe: Fossil-fuel-fired power plants in the United States

Data Type(s): aggregate data; observational data; program source code

Methodology

Data Source:

Energy Information Administration (1985-2005) EIA-767 Steam-Electric Plant Operation and Design Report

Energy Information Administration (1990-2003) Historic Form EIA-423 & FERC-423 Detailed Data on Cost and Quality of Fuels for Electric Plants

U.S. Bureau of Labor Statistics (1984-2015) Producer Price Index

U.S. Census Bureau (2010) 2010 Census U.S. Gazetteer Files for Counties

U.S. Census Bureau (2011) Census Bureau Region and Division Codes and Federal Information Processing System (FIPS) Codes for States

BGC Environmental Brokerage Services (2011) SO2 Allowance Price Indications

Energy Information Administration (1990-2003) The Form EIA-826 "Monthly Electric Utility Sales and Revenue Report with State Distributions"

U.S. Environmental Protection Agency (1993-2013b) Emissions and Facility Data

U.S. Environmental Protection Agency (1993-2013b) Acid Rain Program Compliance data

U.S. Environmental Protection Agency (1993-2013a) Acid Rain Program Allowance Transactions Data

Muller and Mendelsohn (2009) County-level health and environmental damages from Muller and Mendelsohn (2009)

Related Publications

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Published Versions

V1 [2024-07-03]

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