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Review Of The Reserves And Operable Capability Markets: New England's Experience In The First Four Months, Peter Cramton
Review Of The Reserves And Operable Capability Markets: New England's Experience In The First Four Months, Peter Cramton
Peter Cramton
I review the performance of the operating reserves and the operable capability markets in New England. The review covers the first four months of operation from May 1 to August 31, 1999. The review is based on my knowledge of the market rules and their implementation by the ISO, and the market data during this period, including bidding, operating, and settlement information. In the review, I (1) identify the potential market flaws with these markets, (2) look at the performance of the markets to see if the potential problems have materialized, (3) evaluate the ISO's short-term remedies for these market …
The Distributional Effects Of Carbon Regulation, Peter Cramton, Suzi Kerr
The Distributional Effects Of Carbon Regulation, Peter Cramton, Suzi Kerr
Peter Cramton
We examine the distributional effects of carbon regulation. An auction of carbon permits is the best way to achieve carbon caps set by international negotiation to limit global climate change. An auction is preferred to grandfathering (giving polluters permits in proportion to past pollution), because it allows reduced tax distortions, provides more flexibility in distribution of costs, provides greater incentives for innovation, and reduces the need for politically contentious arguments over the allocation of rents.