Richard Kosobud, Houston Stokes, Carol Tallarico, Brian Scott

• 1. Introduction 2. The Political Economy of the Chicago Market 3. Expectations and Actual Performance 4. Traditional Regulations and Market Incentives 5. Simulated Performance of Alternative Market 6. Explaining Unanticipated Market Performance 7. Hot Spots, Spikes, and Emissions Trading 8. Alternative Market Designs: The Experimental Approach 9. Conclusions and Policy Recommendations for Market Redesign Appendix A. Measurement of Daily Ozone and Precursor Concentrations and Selected Meteorological Variables Appendix B. Explanation of Generalized Least Squares (GLS) and Generalized Additive Models (GAM) Estimation Techniques

Richard Kosobud, Houston Stokes, Carol Tallarico, Brian Scott

• 1. Introduction 2. The Political Economy of the Chicago Market 3. Expectations and Actual Performance 4. Traditional Regulations and Market Incentives 5. Simulated Performance of Alternative Market 6. Explaining Unanticipated Market Performance 7. Hot Spots, Spikes, and Emissions Trading 8. Alternative Market Designs: The Experimental Approach 9. Conclusions and Policy Recommendations for Market Redesign Appendix A. Measurement of Daily Ozone and Precursor Concentrations and Selected Meteorological Variables Appendix B. Explanation of Generalized Least Squares (GLS) and Generalized Additive Models (GAM) Estimation Techniques

Richard Kosobud, Houston Stokes, Carol Tallarico, Brian Scott

• 1. Introduction 2. The Political Economy of the Chicago Market 3. Expectations and Actual Performance 4. Traditional Regulations and Market Incentives 5. Simulated Performance of Alternative Market 6. Explaining Unanticipated Market Performance 7. Hot Spots, Spikes, and Emissions Trading 8. Alternative Market Designs: The Experimental Approach 9. Conclusions and Policy Recommendations for Market Redesign Appendix A. Measurement of Daily Ozone and Precursor Concentrations and Selected Meteorological Variables Appendix B. Explanation of Generalized Least Squares (GLS) and Generalized Additive Models (GAM) Estimation Techniques