Aspects Regarding The Profitability Of The Negotiable Pollution Permits

• Main Author: Gabriela Cornelia PICIU
• Format: Article
• Language: English
• Published: “Victor Slăvescu” Centre for Financial and Monetary Research 2012-06-01
• Series: Financial Studies
• Subjects: emissions quotas; profitability; nternalization of the; externalities
• Online Access: ftp://www.ipe.ro/RePEc/vls/vls_pdf/vol16i2p164-173.pdf

After 2000, the problems regarding the trading of the emissions quotas was only recently of interest for study and research because of the adverse effects which environmental pollution has on the humans, economy, society and nature. Recently, the bulk of environmental protection specialists tried to find an answer to the question: “why did the emissions quota trading became a key component in the reform of the environmental policy”? In order to answer this question, and to provide a consistent basis for the successful evaluation of the environmental reforms, we need to define some notions regarding the optimal allocations of the responsibility checking. The underlying theory of cost profitability – the main basis for the current regulations – is developed and used as one of the main ways to measure and evaluate the existing systems.