Optimal Design of Permit Markets with an Ex Ante Pollution Target, August 2006

In this paper, we examine the design of permit trading programs when the objective is to minimize the cost of achieving an ex ante pollution target, that is, one that is defined in expectation rather than an ex post deterministic value. We consider two potential sources of uncertainty, the presence of either of which can make our model appropriate: incomplete information on abatement costs and uncertain delivery coefficients. In such a setting, we find three distinct features that depart from the well-established results on permit trading: (1) the regulator’s information on firms’ abatement costs can matter; (2) the optimal permit cap is not necessarily equal to the ex ante pollution target; and (3) the optimal trading ratio is not necessarily equal to the delivery coefficient even when it is known with certainty. Intuitively, since the regulator is only required to meet a pollution target on average, she can set the trading ratio and total permit cap such that there will be more pollution when abatement costs are high and less pollution when abatement costs are low. Information on firms’ abatement costs is important in order for the regulator to induce the optimal alignment between pollution level and abatement costs.

Iowa Transportation Laws, HR-234, 1985

Research project HR-234 was sponsored by the Iowa Highway Research Board and the Iowa Department of Transportation. In the preparation of this compilation of highway and street laws of Iowa, an attempt has been made to include those sections of the Code to which reference is frequently required by the Department of Transportation, counties, cities and towns in their conduct of highway and street administration, construction and maintenance. Because of the broad scope of highway and street work and the many interrelated provisions of Iowa law, and in the interests of keeping this volume in a convenient and usable size, some Code provisions which have some bearing on the principal subject were of necessity omitted. The volume has been compiled in loose leaf form with the expectation that periodic updates will keep the reader informed regarding changes in the law and/or new laws. A general index is provided at the end of the text of this volume. Each major topic is divided into relevant subtopics and are accompanied by appropriate Code sections. This publication is offered with the hope and belief that it will prove to be of value and assistance to those concerned with the problems of establishing, maintaining and administering a highway and street system. The reader is cautioned to consult legal counsel on all matters beyond the scope of this text.