This simulation provides students with the opportunity to experience first hand the economy of carbon markets and allow trading. Each student has personal information on the role of the company he or she runs. The student must make decisions on pollution reduction investment and output in an uncertain price pollution permits. Students form groups of five, and throughout the exercise, students can buy and sell permits within their group. Trading results dictate permit prices, and at the end of trading, each firm expects profits and pay for pollution penalties as appropriate. "Hide
by Peter A. Coles Source: Harvard Business School 2 pages. Publication Date: February 25, 2011. Prod. #: 911055-PDF-ENG
