Auctions or grandfathering: the political economy of tradable emission permits

摘要: Despite the prevalence of grandfathered permits, we still observe that a hybrid policy, in which fraction initial emission permits is distributed through auctions, adopted some cases. We also polluting industries support auctioned and most environmental groups permits. This paper attempts to explain these phenomena from perspective political economy, investigates conditions under grandfathering, or instrument will be equilibrium policy. By constructing two-stage lobbying game, type policy (auction, instrument) determined first stage, then number decided second highlight strategic interaction activities between two stages explaining behavior groups.