Environmental and Production Rights Futures: A New Booming Market?

Derivatives Quarterly

Posted: 14 Oct 1997


Governments or supranational organizations have begun to introduce environmental rights (such as sulfur dioxide or chlorofluorocarbon rights) and production rights (such as milk and fishery rights) to better link production process costs and results. The authors show that the characteristics of these rights make them quite suitable for futures trading. They are an efficient tool for hedging against adverse fluctuations both in prices of rights and in the profit capacity of complicated production processes.

JEL Classification: G13, Q2, Q3, G10

Suggested Citation

Pennings, Joost M. E. and Meulenberg, Matthew T.G., Environmental and Production Rights Futures: A New Booming Market?. Derivatives Quarterly. Available at SSRN: https://ssrn.com/abstract=36305

Joost M. E. Pennings (Contact Author)

Maastricht University ( email )

P.O. Box 616
Maastricht, 6200MD

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN

Matthew T.G. Meulenberg

Wageningen UR ( email )

Hollandseweg 1
6706 KN Department of Marketing and Marketing Research
31-317-482205 (Phone)
31-317-484361 (Fax)

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