Related papers: Permit Allocation in Emissions Trading using the B…
Secondary markets and resale are integral components of all emission trading systems. Despite the justification for these secondary trades, such as unpredictable demand, they may encourage speculation and result in the misallocation of…
Fair division is a significant, long-standing problem and is closely related to social and economic justice. The conventional division methods such as cut-and-choose are hardly applicable to realworld problems because of their complexity…
The Boltzmann distribution (the most probable distribution) is one of the most important concepts used in physics, chemistry and biology. Suppose we put the system initially in one of the less probable state then the system will find the…
In this paper, we present a mean field game to model the production behaviors of a very large number of producers, whose carbon emissions are regulated by government. Especially, an emission permits trading scheme is considered in our…
Existing emissions trading system (ETS) designs inhibit emissions but do not constrain warming to any fxed level, preventing certainty of the global path of warming. Instead, they have the indirect objective of reducing emissions. They…
In this paper we deal with production situations where a cap or limit to the amount of greenhouse gas emissions permitted is imposed. Fixing a tax for each ton of pollutant emitted is also considered. We use bankruptcy rules to define…
The probability distribution function for thermodynamics and econophysics is obtained by solving an equilibrium equation. This approach is different from the common one of optimizing the entropy of the system or obtaining the state of…
This paper presents a novel way to approximate a distribution governing a system of coupled particles with a product of independent distributions. The approach is an extension of mean field theory that allows the independent distributions…
This paper analyzes the dynamic incentives for technology adoption under a transferable permits system, which allows for strategic trading on the permit market. Initially, firms can invest both in low-emitting production technologies and…
The Boltzmann distribution predicts the collective behavior of systems at thermodynamic equilibrium as a function of their constituent parts. Yet most systems in nature are not at equilibrium, and a unified theory of their behavior does not…
In the context of increasingly complex environmental challenges, effective pollution control mechanisms are crucial. By extending the state of the art auction mechanisms, we aim to develop an efficient approach for allocating pollution…
The family of Boltzmann distributions is used in statistical mechanics to describe the distribution of states in systems with a given temperature. We give a novel characterization of this family as the unique one satisfying independence for…
We consider the problem of reducing the carbon emissions of a set of firms over a finite horizon. A regulator dynamically allocates emission allowances to each firm. Firms face idiosyncratic as well as common economic shocks on emissions,…
Tackling climate change is at the top of many agendas. In this context, emission trading schemes are considered as promising tools. The regulatory framework for an emission trading scheme introduces a market for emission allowances and…
We develop a novel method to separate the components of a diffuse emission process based on an association with the energy spectra. Most of the existing methods use some information about the spatial distribution of components, e.g.,…
A prevalent assumption in auction theory is that the auctioneer has full control over the market and that the allocation she dictates is final. In practice, however, agents might be able to resell acquired items in an aftermarket. A…
The Boltzmann distribution describes a single parameter (temperature) family of probability distributions over a state space; at any given temperature, the ratio of probabilities of two states depends on their difference in energy. The same…
Spectrum being a very scarce natural resource of a country has to be judicially used for the purpose of nation building and the allocation process to telecom operators should be very transparent and ethical. There are various ways of how…
This paper considers the optimal sensor allocation for estimating the emission rates of multiple sources in a two-dimensional spatial domain. Locations of potential emission sources are known (e.g., factory stacks), and the number of…
We present a novel approach to the pricing of financial instruments in emission markets, for example, the EU ETS. The proposed structural model is positioned between existing complex full equilibrium models and pure reduced form models.…