Cap and Trade Regulation of Greenhouse Gases: Theory and Practice
This workshop will introduce participants to the economics of cap and trade systems for limiting emissions of pollutants. The initial part of the workshop is a market experiment/simulation in which those attending participate as decision makers in a cap and trade system. The experiment serves to introduce key ideas about cap and trade systems and the use of market mechanisms for environmental regulation. Following the experiment will be a presentation of how several cap and trade systems have been implemented around the world and of the effectiveness of these systems. There will also be a discussion of proposed U.S. federal cap and trade policy on greenhouse gas emissions. The workshop will be an opportunity for those with an interest in environmental science and policy to learn more about the workings cap and trade systems.
Bio: Stanley Reynolds received his bachelors degree in mathematics from Miami University and his Ph.D. in economics from Northwestern University. He is currently Professor of Economics and SRP Professor of Technology, Public Policy & Markets at the University of Arizona. Professor Reynolds expertise is in Industrial Organization and Experimental Economics. He has published his research in leading professional journals such as The Quarterly Jour. of Economics, Econometrica, Jour. of Economic Theory, The RAND Jour. of Economics and the International Economic Review. He has given testimony on energy policy to the Arizona legislature and to the Western Conference of State Attorneys General. His current research examines the performance of wholesale electricity markets and issues in renewable energy.
Bio: John Wooders received his B. Sc. degree in Math and Economics at the University of Toronto and his Ph. D. in economics from Cornell University. He is a Professor of Economics and Freshwater Group Fellow at the Eller College of Management. His areas of expertise are Microeconomic Theory, Game Theory, and Experimental Economics. He has published in leading journals, including the American Economic Review, the Journal of Economic Theory, and Games and Economic Behavior. He current research is on auctions and on behavior is situations requiring unpredictability.
Institute for Environment and Society
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