Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
Please note that all times are shown in the time zone of the conference. The current conference time is: 24th Aug 2026, 12:47:53am WEST
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Daily Overview |
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Emissions Trading 1: Experimental Economics Location: B136 Session Chair: Karin Mayr-Dorn, Johannes Kepler University Linz | |
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An Experimental Comparison of Cap- and Intensity-based Pollution Markets 1: University of Queensland, Australia; 2: University of Basel, Switzerland Markets are an increasingly popular regulatory choice to cost effectively control negative externalities. Traditionally, market designs have employed a cap-and-trade format that places an absolute limit on the quantity of emissions. In contrast, many new schemes---including the world's largest in China---limit the aggregate emissions intensity of production. This article theoretically and experimentally compares intensity- and cap-based markets. We design a novel laboratory experiment, where firms choose both output and allowance exchange. Consistent with our theoretical predictions, we find that employing an intensity-based market rather than an equivalent cap-and-trade scheme significantly increases aggregate output, average allowance prices, aggregate abatement, and decreases industry profits. Overall, both markets perform as expected and close to the cost effective allocation of pollution abatement but with lower levels of aggregate profit as high production costs types produce significantly more output than predicted. | |