Dec. 1, 2016: Timothy Cason discusses tradable emission permits and how allocation methods affect investment

November 28, 2016

‘Tradable emissions permits to reduce pollution: How might methods of allocating permits affect investment decisions?’
Thursday, Dec. 1, 12-1 p.m.
ISER Conference Room – 1901 Bragaw Street, Suite 301

Many countries are now using emissions-trading schemes as a policy to reduce pollution cost-effectively. But there is little evidence about what incentives tradable-permit markets offer companies to make timely investments in advanced pollution-abatement technology. Timothy Cason and a colleague from the University of Stirling in the UK recently investigated that question through experimental economics.

They used a laboratory experiment to assess how two methods of allocating tradable permits—auctioning permits or grandfathering them—might affect businesses’ decisions about investing in new technology to reduce pollution. Please join us at ISER to learn what they found.

Timothy Cason is a professor of economics at the Krannert School of Management at Purdue University, as well as the director of Purdue’s Vernon Smith Experimental Economics Laboratory. This semester, Cason was also the Rasmuson Chair of Economics at UAA.

1901 Bragaw Street is on Bragaw between Northern Lights and Debarr. Parking is free. Call (907) 786-7710 if you need directions.

Note: Those who can’t attend in person can stream the talk live at

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