Informe Técnico de Consultoría ASPECTOS CONCEPTUALES Y ...

AUTOR (ES):Montero, Juan PabloTITULOMarket Power in Pollution Permit MarketsAÑO 2009REFERENCIABIBLIOGRAFICACenter for Energy and Environmental Policy Research,Series/Report MIT-CEEPR; 09-006 WP.IDIOMAInglésPALABRAS CLAVES market power, emissions trading, pollution permits, storablepermitsRESUMENDIRECCIÓN DE ACCESOELECTRÓNICOAs with other commodity markets, markets for tradingpollution permits have not been immune to market powerconcerns, In this paper.I survey the existing literature onmarket power in permit trading but also contribute withsome new results and ideas. I start the survey with Hahn's(1984) dominant-firm (static) model that I then extend to thecase in which there are two or more strategic firms that mayalso strategically interact in the output market, to the case inwhich current permits can be storcd for future use (as inmost existing and proposed market designs), to thepossibility of collusive behavior, and to the case in whichpermits are auctioned off instead of allocated for free tofirms. I finish the paper with a review of empirical evidenceon market power if any, with particular attention to the U.S.sulfur market and the Southern California NOx market.A-49