About the event

Lana Friesen
Lana Friesen

This series is a joint initiative by The University of Queensland & The University of Exeter.

Research will be presented by UQ's Lana Friesen, with a critical review by discussant Luke Lindsay of the Univesity of Exeter. The seminar closes with general Q&A.

This seminar is chaired by Associate Professor Ian MacKenzie. 

Time and date: Wednesday 17th June
5 – 6.15 pm (AETS)
8 – 9.15 am (GMT)

Join via Zoom: https://uqz.zoom.us/j/97677168560

Abstract

Using an experimental approach we investigate the new institutional design for the US Regional Greenhouse Gas Initiative (RGGI). The proposed scheme incorporates two allowance reserves that adjust the initial supply of allowances in the event of unexpectedly high or low allowance demand. In particular, allowance supply is increased when the initial clearing price is above a pre-determined upper trigger price, and decreased when the initial clearing price is below a pre-determined lower trigger price. We provide evidence that these two trigger prices act as focal points: the distribution of clearing prices is bimodal and aligns with the trigger prices. We also show that decreasing the range between the two trigger prices increases total revenue but decreases allocative efficiency. Importantly, we find the regulation is more sensitive to changes in trigger prices than reserve quantities.

 

About QUEX Seminar Series

A partnership between the University of Queensland and the University of Exeter, this high-level collaboration is a joint commitment to co-produce research of the highest quality, boost industry and business collaboration, and publish high-level policy reports designed to inform and shape key government initiatives across the globe. 

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Banner collage uses a modified version of the University of Exeter Piazza licenced under Creative Commons 2.0.

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