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The Effect on Asset Values of the Allocation of Carbon Dioxide Emission Allowances
Dallas Burtraw, Karen L. Palmer, Ranjit Bharvirkar, Anthony Paul
RFF Discussion Paper 02-15 | March 2002
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RESEARCH TOPICS:
Abstract
Paradoxically, owners of existing generation assets may be better off paying for carbon dioxide emission allowances than having them distributed for free. This analysis shows that it takes just 7.5% of the revenue raised under an auction to preserve the asset values of existing generators.
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