The Determinants of Credit Allocations in a Market-Based Trading System: Evidence from the RECLAIM Program

Authors

Antonio M. Bento, Cornell University
Emeric Henry, Sciences Po
Scott E. Lowe, Boise State UniversityFollow

Document Type

Article

Publication Date

2013

Abstract

This paper examines the determinants of emission credit allocations under the Regional Clean Air Incentives Market (RECLAIM) - a program aimed at reducing nitrogen oxides (NO_X) and sulfur oxides (SO_X) - in the greater Los Angeles area. Our results suggest that deviations in the allocation of emission credits can be systematically explained by firm-level factors and the location of the facility. Our results also indicate that deviations in the allocation of emission credits may have been made in an attempt to regulate toxics, and that certain industries were protected in the early stages of the program.

Copyright Statement

This document was originally published by the Southern Regional Science Association in The Review of Regional Studies. This work is provided under a Creative Commons Attribution Non-Commercial License 4.0. Details regarding the use of this work can be found at: http://creativecommons.org/licenses/by-nc/4.0/.

Publication Information

Bento, Antonio M.; Henry, Emeric; and Lowe, Scott E.. (2013). "The Determinants of Credit Allocations in a Market-Based Trading System: Evidence from the RECLAIM Program". The Review of Regional Studies, 43(1), 51-80.