Optimal Trading Ratios for Pollution Permit Markets
---- Acknowledgments ----
This research was supported by NSF grant number 0909275. We would like to thank seminar participants at the Energy Institute at Haas, UNC Greensboro, Elon University, the University of Michigan at Ann Arbor, the AERE summer 2012 conference, and the NBER summer 2012 conference, as well as Meredith Fowlie, Nicholas Muller, William Pizer, and Rob Williams for helpful comments and suggestions. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.