Saturday, July 12, 2008

Sell those SO2 allowances, sell them now

A funny take on the intersection of legislation risk and markets from Environmental Economics:

The market for SO2 allowances is about to crash. The DC Circuit court just vacated the Clean Air Interstate Rule.

First step: Sell those SO2 allowances you have put your kid's college funds in.
Second step: Think about research questions to explore the market reaction to this ruling.