Environmental and Production Rights Futures: A New Booming Market?

Derivatives Quarterly

Posted: 14 Oct 1997

Abstract

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
Netherlands

Wageningen UR ( email )

Hollandseweg 1
Wageningen, 6706KN
Netherlands

Matthew T.G. Meulenberg

Wageningen UR ( email )

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

Register to save articles to
your library

Register

Paper statistics

Abstract Views
478
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information