The premier science journal, Nature Climate Change, featured a recently published article by Bill Shobe, Director of the Center for Economic and Policy Studies at the Weldon Cooper Center. The article titled, Price-Responsive Allowance Supply in Emissions Markets, presents a responsive approach that would allow for more effective environmental policies. Nature Climate Change summarizes the value of this innovative approach: "A team of US researchers from Resources for the Future and the University of Virginia have developed an approach they call ‘price-responsive supply’, which simultaneously determines the price and quantity in an allowance auction...The key factor of the approach is the automatic adjustment of the supply of allowances in response to new information made available to market participants regarding marginal abatement costs. The approach allows policymakers, who are faced with many uncertainties, to achieve mitigation goals using a dynamic process."
Titled Price with Quantities (third column)
