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Title: Allowance trading made easy: The cash-forward settlement

Abstract

Centralized trading for cash-forward settlement adopts the most useful aspects of traditional commodity trading of spot cash and futures contracts, but eliminates those aspect which are most problematic for the regulated utility industry. Title IV of the Clean Air Act Amendments of 1990 created a system of tradeable pollution rights which promises to achieve U.S. acid rain reduction goals at a savings of billions of dollars compared to traditional means of environmental regulation. The ultimate success of this allowance trading program depends in large part on the utility industry's capacity to integrate a new type of transaction into planning, decision-making, and cost recovery mechanism. The breadth and novelty of this challenge, along with the conservative nature of utility planners, executives, and regulators, may be one reason exploitation of allowance trading has been slow to develop.

Authors:
Publication Date:
OSTI Identifier:
5199064
Resource Type:
Journal Article
Journal Name:
Electricity Journal; (United States)
Additional Journal Information:
Journal Volume: 6:9; Journal ID: ISSN 1040-6190
Country of Publication:
United States
Language:
English
Subject:
29 ENERGY PLANNING, POLICY AND ECONOMY; ELECTRIC UTILITIES; AIR POLLUTION; PLANNING; BUSINESS; CLEAN AIR ACTS; TRADE; LAWS; POLLUTION; POLLUTION LAWS; PUBLIC UTILITIES; 290300* - Energy Planning & Policy- Environment, Health, & Safety; 294000 - Energy Planning & Policy- Fossil Fuels

Citation Formats

Bartels, C.W.. Allowance trading made easy: The cash-forward settlement. United States: N. p., 1993. Web. doi:10.1016/1040-6190(93)90080-5.
Bartels, C.W.. Allowance trading made easy: The cash-forward settlement. United States. doi:10.1016/1040-6190(93)90080-5.
Bartels, C.W.. Mon . "Allowance trading made easy: The cash-forward settlement". United States. doi:10.1016/1040-6190(93)90080-5.
@article{osti_5199064,
title = {Allowance trading made easy: The cash-forward settlement},
author = {Bartels, C.W.},
abstractNote = {Centralized trading for cash-forward settlement adopts the most useful aspects of traditional commodity trading of spot cash and futures contracts, but eliminates those aspect which are most problematic for the regulated utility industry. Title IV of the Clean Air Act Amendments of 1990 created a system of tradeable pollution rights which promises to achieve U.S. acid rain reduction goals at a savings of billions of dollars compared to traditional means of environmental regulation. The ultimate success of this allowance trading program depends in large part on the utility industry's capacity to integrate a new type of transaction into planning, decision-making, and cost recovery mechanism. The breadth and novelty of this challenge, along with the conservative nature of utility planners, executives, and regulators, may be one reason exploitation of allowance trading has been slow to develop.},
doi = {10.1016/1040-6190(93)90080-5},
journal = {Electricity Journal; (United States)},
issn = {1040-6190},
number = ,
volume = 6:9,
place = {United States},
year = {1993},
month = {11}
}