@article{Fowlie:47002,
      recid = {47002},
      author = {Fowlie, Meredith and Perloff, Jeffrey M.},
      title = {Distributing pollution rights in cap-and-trade programs:  are outcomes independent of allocation?},
      address = {2008-09},
      number = {1557-2016-133055},
      series = {CUDARE Working Paper},
      pages = {43},
      year = {2008},
      abstract = {According to the Coase theorem, if property rights to  pollute are clearly established and
emissions permit  markets nearly eliminate transaction costs, the permit  market equilibrium will be independent of how the permits  are initially distributed among …firms. Testing the  independence of …firms' permit allocations and emissions is  difficult because of endogeneity and omitted variable bias.  We exploit the random assignment of …firms to different  permit
allocation cycles in Southern California's RECLAIM  Program to test for a causal relationship between  facility-level emissions and initial permit allocations.  Our primary …finding is that a null hypothesis of zero  effect cannot be rejected.},
      url = {http://ageconsearch.umn.edu/record/47002},
      doi = {https://doi.org/10.22004/ag.econ.47002},
}