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Colleagues,

Can anyone point me to some good diagrams (hopefully available online) that can help me teach aspects of cap-and-trade and carbon tax systems to business students?

I'm particularly looking for diagrams that illustrate how a cap-and-trade system would affect decision making for several firms with different amounts of GHG emissions. (i.e., will cause them to look internally at their various opportunities to reduce emissions, determine costs of each, and then decide whether to take these actions, buy and/or sell carbon permits, eventually leading to a reduction in overall GHG emissions).

I think students grasp the impact of a tax more readily and thus a diagram on the impact of carbon taxes isn't as important, but if anyone knows of a good one of these, that would be appreciated as well.

Thanks in advance for any suggestions.

Gordon


Gordon Rands, Ph.D.
Associate Professor of Management
Western Illinois University
1 University Circle
Macomb, IL 61455

I would try Resources for the Future website, they have many excellent research papers on this topic.

Dinah Koehler, Sc.D.
Senior Research Associate
Center for Corporate Citizenship and Sustainability
The Conference Board
845 Third Avenue
New York, NY 10022
Tel: 212 339-0406
Fax: 212 836-3822


-----Original Message-----
From: Organizations and the Natural Environment Discussion [mailto:ONE-L@AOMLISTS.PACE.EDU] On Behalf Of Gordon P Rands
Sent: Wednesday, October 22, 2008 12:38 PM
To: ONE-L@AOMLISTS.PACE.EDU
Subject: Teaching cap-and-trade vs. carbon taxes

Colleagues,

Can anyone point me to some good diagrams (hopefully available online) that can help me teach aspects of cap-and-trade and carbon tax systems to business students?

I'm particularly looking for diagrams that illustrate how a cap-and-trade system would affect decision making for several firms with different amounts of GHG emissions. (i.e., will cause them to look internally at their various opportunities to reduce emissions, determine costs of each, and then decide whether to take these actions, buy and/or sell carbon permits, eventually leading to a reduction in overall GHG emissions).

I think students grasp the impact of a tax more readily and thus a diagram on the impact of carbon taxes isn't as important, but if anyone knows of a good one of these, that would be appreciated as well.

Thanks in advance for any suggestions.

Gordon


Gordon Rands, Ph.D.
Associate Professor of Management
Western Illinois University
1 University Circle
Macomb, IL 61455

Gordon:
I remember reading this article (see below). Not sure if it has diagrams.
Might be worth a look. Please share with the listserve any info you get!


Scientific American, Making Carbon Markets Work, Dec 2007 (pp 70-77)
http://www.sciam.com/article.cfm?id=making-carbon-markets-wor

Nancy


On 10/22/08 9:38 AM, "Gordon P Rands" <GP-Rands@WIU.EDU> wrote:

> Colleagues,
>
> Can anyone point me to some good diagrams (hopefully available online) that
> can help me teach aspects of cap-and-trade and carbon tax systems to business
> students?
>
> I'm particularly looking for diagrams that illustrate how a cap-and-trade
> system would affect decision making for several firms with different amounts
> of GHG emissions. (i.e., will cause them to look internally at their various
> opportunities to reduce emissions, determine costs of each, and then decide
> whether to take these actions, buy and/or sell carbon permits, eventually
> leading to a reduction in overall GHG emissions).
>
> I think students grasp the impact of a tax more readily and thus a diagram on
> the impact of carbon taxes isn't as important, but if anyone knows of a good
> one of these, that would be appreciated as well.
>
> Thanks in advance for any suggestions.
>
> Gordon
>
>
> Gordon Rands, Ph.D.
> Associate Professor of Management
> Western Illinois University
> 1 University Circle
> Macomb, IL 61455

Hello Gordon

Professor Robert Repetto and myself (as TA) came up with the following
assignment for our class on financial markets and the environment at
Yale to be
done in teams of 3-5 students.

Assignment 7: Carbon Market Design

Due in class as a presentation by teams.

If the U.S. were to adopt a carbon trading market: nationally, what should it
look like?

Each team comes up with preferred answer to the following criteria:
- Choice of baseline
- Level of caps
- Initial permit allocation mechanism
- Compliance deadline
- Market participants
- Eligible carbon reductions/sequestrations
- Bank-ability of permits
- Price ceiling/escape valve
- Scope of offset provisions
- Enforcement mechanism
- Market organization and administration

Required Readings

Congressional Budget Office, An Evaluation of Cap-and-Trade Policies for
Reducing U.S. Carbon Emissions, June, 2001

Environmental Protection Agency (EPA). 2003. Tools of the Trade: A Guide to
Designing & Operating a Cap & Trade Program for Pollution Control. Washington
DC: EPA.

International Emissions Trading Association (IETA), State and Trends in the
Carbon Market, 2005. http://carbonfinance.org/

Repetto, R. 2001. The Clean Development Mechanism: Institutional
Breakthrough or
Institutional Nightmare? Policy Sciences, 2001.

Regional Greenhouse Gas initiative (RGGI) website: http://www.rggi.org/

Akhurst et. al, 2003. Greenhouse gas emissions trading in BP. Energy
Policy, vol
31:7, p 657-653

Cheers,
Anastasia O'Rourke

Quoting Nancy Kurland <nancy.kurland@CSUN.EDU>:

> Gordon:
> I remember reading this article (see below). Not sure if it has diagrams.
> Might be worth a look. Please share with the listserve any info you get!
>
>
> Scientific American, Making Carbon Markets Work, Dec 2007 (pp 70-77)
> http://www.sciam.com/article.cfm?id=making-carbon-markets-wor
>
> Nancy
>
>
> On 10/22/08 9:38 AM, "Gordon P Rands" <GP-Rands@WIU.EDU> wrote:
>
>> Colleagues,
>>
>> Can anyone point me to some good diagrams (hopefully available online) that
>> can help me teach aspects of cap-and-trade and carbon tax systems to
>> business
>> students?
>>
>> I'm particularly looking for diagrams that illustrate how a cap-and-trade
>> system would affect decision making for several firms with different amounts
>> of GHG emissions. (i.e., will cause them to look internally at their various
>> opportunities to reduce emissions, determine costs of each, and then decide
>> whether to take these actions, buy and/or sell carbon permits, eventually
>> leading to a reduction in overall GHG emissions).
>>
>> I think students grasp the impact of a tax more readily and thus a
>> diagram on
>> the impact of carbon taxes isn't as important, but if anyone knows of a good
>> one of these, that would be appreciated as well.
>>
>> Thanks in advance for any suggestions.
>>
>> Gordon
>>
>>
>> Gordon Rands, Ph.D.
>> Associate Professor of Management
>> Western Illinois University
>> 1 University Circle
>> Macomb, IL 61455
>