Academic Studies featuring TSSEF’s mechanisms

Complete report ((3976 kB))

Enell, M. (2012). Flexible emission fees. Nordic Council of Ministers. (download link)

This report explores the urgent question of how to transition to a green economy. If the price of pollution becomes the same as the price to not pollute, i.e. the investment required for a non-polluting solution, could market forces be harnessed to create a totally green economy? Would the consumer lead the way if pollution fees were simply credited into everyone’s account? Would economic growth and technical development forge ahead? Taking the flexible fee mechanism proposed by Höglund as a starting point, the report examines the academic literature and presents the results of a workshop where leading Swedish economists and environmentalists examine the issues involved in price discovery mechanisms and call for further developments in this field.

Breugel, C. V., Enggaard, M., Jessen, J. E., Stavlöt, U., Sköld, C., & Berghäll, E. (2014). Two approaches to pricing pollution. (download link)

Isbn: 978-92-8932-723-7

In comparison is the commonly used Cap and Trade method with an alternative and novel method for pricing pollution: The aim was to conduct a practical approach to clarify advantages and challenges of the respective mechanisms. Shortly, the report promotes:
1) Levying a Fee which is sufficiently high and adjusted sufficiently often for a Fee
2) Letting the Futures Market and other hedging and insurance instruments indicate the price (the average abatement cost) which can be levied without harming the economy.
3) Securing a repayment of a sufficiently large fraction of the revenue from the Fee.
These three parts or components are all essential to the mechanism. Still, key questions remain unanswered in this report. This project was launched by the Working Group for SCP (HKP) in collaboration with the Working Group on Environment and Economy (MEG) under the Nordic Council of Ministers.

coverIVL reportSanctuary, M., & Hoglund, A. (2005). A Flexible Pollution Tax. A report written on behalf of Nutek-the Swedish Agency for Economic and Regional Growth. (download here)

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