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Forthcoming Articles

  • 'Diversion in the Criminal Justice System', Michael Mueller-Smith, Kevin T. Schnepel.

Past Highlight
“Cement Factory” by abarndweller, used under CC by-2.0. Desaturated from original with colour filter.
23 March 2017 Environment, Organisation of Markets Authors: Meredith Fowlie (University of California, Berkeley, and NBER), Mar Reguant (Northwestern University, NBER and CEPR), Stephen P. Ryan (Washington University in St. Louis and NBER)

Can market based regulation reduce greenhouse gas emissions? Evidence from the United States

Market-based mechanisms such as ‘cap-and-trade’ have become increasingly popular policy tools for reducing harmful emissions. But designing these schemes so that emissions are curbed efficiently requires understanding key elements of an industry’s structure, notably the degree of market power and the extent to which unregulated foreign producers compete with domestic firms. This research investigates these issues in the US cement industry, an emissions-intensive sector exposed to foreign competition. The findings suggest that the optimal regulatory policy in such industries may be to rebate compliance costs partially on the basis of output or to impose border tax adjustments.

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