Wednesday, September 24, 2008

Pollution permits: RGGI auction

The Regional Greenhouse Gas Inititative prepares to hold its first auction tomorrow: Emissions auction aims to be US model
Power plants in 10 states will bid on the right to pollute

"The first auction is really just a small release of allowances to the market for price discovery purposes," he said. "I think a lot of people will just be kind of testing the waters."

Here is the RGGI; auction results will be posted here. The auction will be a uniform price, sealed bid auction. A full set of documents is here.

Experiments played a role in the design process, see

Auction Design for Selling CO2 Emission Allowances Under the
Regional Greenhouse Gas Initiative
Final Report
October 26, 2007
Charles Holt, William Shobe
University of Virginia
Dallas Burtraw, Karen Palmer
Resources for the Future
Jacob Goeree
California Institute of Technology

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