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Quantitative Modeling of Emission Markets

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Abstract

The introduction of marketable pollution rights is considered as an appropriate way to combat environmental problems on a global scale. According to theoretical arguments, a properly designed emission trading system should help reaching pollution reduction at low social costs. Nowadays, environmental markets are being established around the world. Their practice provides a stress test for the underlying economic theory and raises a lively discussion about advantages and shortcomings of emission trading. In this work, we highlight some core principles underlying quantitative understanding of emission markets and elaborate on mathematical problems and applications, arising in this context.

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Authors and Affiliations

  1. Department of Mathematics, National University of Singapore, 2 Science Drive, 117543, Singapore, Singapore

    Juri Hinz

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  1. Juri Hinz
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Correspondence to Juri Hinz.

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Hinz, J. Quantitative Modeling of Emission Markets. Jahresber. Dtsch. Math. Ver. 112, 195–216 (2010). https://doi.org/10.1365/s13291-010-0008-1

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  • DOI: https://doi.org/10.1365/s13291-010-0008-1

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