Revisiting the Coase theorem

Hervés-Beloso, Carlos; Moreno-Garcı́a, Emma

doi:10.1007/s00199-020-01330-9

Cited by 12 publications

(3 citation statements)

References 20 publications

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“…In the late 1950s, Ronald Harry Coase positively discussed the economic function of property rights: overcoming externalities and reducing social costs. He systematically guarantees the effectiveness of resource allocation [14]. Coase advocated establishing a complete property rights system to solve the external diseconomies of the environment, including property rights, emission rights, emission transfer rights, and use rights.…”

Section: Financial Market Systemmentioning

confidence: 99%

Carbon Derivatives-Directed International Supervision Laws and Regulations and Carbon Market Mechanism

Cheng

2022

Sustainability

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With the global acknowledgment of the Kyoto Protocol came the carbon derivatives such as carbon futures, options, and swap contracts. The innovative carbon derivatives are complex in design and contain risks that are difficult to predict and avoid. The global Carbon Market should have higher requirements in the supervision laws and regulations. To this end, the financial system theories and the financial characteristics of carbon derivatives are expounded. The three-dimensional structural modeling technique of systems engineering is introduced to construct the Carbon Market framework. The proposed framework factors for the organization, product, and policy dimensions of the Carbon Market are also described. Additionally, this model explains the market organization, the instruments and media connecting market supply and demand, and government regulation measures. In particular, the supervision and management aspects of the policy dimension are introduced in detail. The Carbon Market and relevant law systems in the United States, the European Union, and India are mainly studied and compared. Based on the comparison results, the necessity of market supervision is explained. Finally, the Big Vector Autoregression model is used to study the relationship between the Carbon Market, energy market, and financial market. After the introduction of the National Carbon Market, the correlation between the energy market and the financial market has become relatively complex but also presents a certain degree of asymmetry. According to the above results, the paper proposes to use the “regulatory sandbox” mechanism to improve the regulation of the subject and object of the carbon financial and legal relationship and try to carry out regulatory innovation for the risks of the entire carbon market.

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Section: Financial Market Systemmentioning

confidence: 99%

Carbon Derivatives-Directed International Supervision Laws and Regulations and Carbon Market Mechanism

Cheng

2022

Sustainability

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“…The Coase Theorem states that if transaction costs are low or tend to zero, market participants can reallocate resources through voluntary transactions and negotiate appropriate compensations or trade-offs to maximize the overall welfare and efficiency of resource allocation [31]. In addition, studies have shown that excessive transaction costs and weak property rights have a dampening effect on market innovation [32].…”

Section: Theoretical Mechanisms and Research Hypothesesmentioning

confidence: 99%

Can a Water Bank Improve Groundwater Rights Market Efficiency?—A Study Based on Monte Carlo Simulations

Chen,

Luo,

Tian

et al. 2023

Sustainability

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Groundwater possesses a natural advantage as a reservoir, making it well-suited for storage. Introducing a water bank to the groundwater market not only reduces storage costs but also revitalizes the groundwater rights market, achieving synergy between the economic and ecological values of regional water resources. This study combines the core functions of a water bank to establish a theoretical framework for mechanisms concerning value appreciation and risk prevention. Approaching the topic from the perspectives of transaction costs and market price mechanisms, we employ the Monte Carlo algorithm for simulation to study the mechanistic impact of a water bank on the efficiency of the water market. It reveals that a water bank, compared to direct transactions between parties, can effectively reduce the number of transactions in the fragmented water rights market. Additionally, it effectively utilizes market transaction information to provide accurate pricing. Furthermore, we alter model parameters to explore the relationship between the average number of transactions in the market and supply–demand equilibrium. We also investigate how changes in the acceptable price range in the supply–demand market affect the pricing strategies of a water bank and open market pricing. These findings substantiate the necessity of developing a water bank in practice.

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“…Of course, the Coase Theorem has its own detractors who point out that it is highly unlikely to see the necessary competitive economic conditions. Moreover, communication among a citizenry is insufficient to allow the level of interaction required to make this a viable alternative to Pareto efficiency and experts therefore view the theorem as equally theoretical (Hervés-Beloso & Moreno-García, 2021).…”

Section: Critics Of Efficiency Theorymentioning

confidence: 99%

Mergers and acquisitions in higher education: experiences of senior leaders

Hanke

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Revisiting the Coase theorem

Cited by 12 publications

References 20 publications

Carbon Derivatives-Directed International Supervision Laws and Regulations and Carbon Market Mechanism

Carbon Derivatives-Directed International Supervision Laws and Regulations and Carbon Market Mechanism

Can a Water Bank Improve Groundwater Rights Market Efficiency?—A Study Based on Monte Carlo Simulations

Mergers and acquisitions in higher education: experiences of senior leaders

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