Emissions Trading Principles and Practice [Paperback]

First published in 1985, Emissions Trading was a comprehensive review of the first large-scale attempt to use economic incentives in environmental policy in the U.S. and of the empirical and theoretical research on which this approach is based. Since its publication it has consistently been one of the most widely cited works in the tradable permits literature. The second edition of this classic study of pollution reform considers how the use of transferable permits to control pollution has evolved, looks at how these programs have been implemented in the U.S. and internationally, and offers an objective evaluation of the resulting successes, failures, and lessons learned over the last twenty-five years.Figures and TablesPrefaceAbbreviationsIntroductionDescribing the EvolutionThe Evolution of Emissions TradingThe Evolution of Design FeaturesAn Overview of the BookThe Conceptual FrameworkThe Regulatory DilemmaThe Cost-Effectiveness FrameworkCost-Effective Permit MarketsThe Role of Transactions CostsThe Role of Administrative CostsThe Role of Technical ChangeSummaryThe Consequences of Emissions TradingThe Nature of the EvidenceEx Ante Evaluations: The EvidenceEx Post Evaluations: The EvidenceSummaryThe Spatial DimensionDifficulties in Implementing an Ambient Permit SystemPossible AlternativesSummaryThe Temporal DimensionBorrowing, Banking, and the Nature of the Environmental TargetLinking Emissions and Pollutant ConcentrationsThe Role of Banking and BorrowingStrategies for Controlling Seasonal or Episodic PeaksSummaryThe Initial AllocationInitial Allocation ApproachesComparing the Allocation ApproachesCost-Effectiveness Implications of the Initial AllocationSummaryMarket PowerPermit Price Manipulation: Conceptual ModelsLeveraging Power Between Output and Permit MarketsEx Ante SimulationsResults from Experimental StudiesMechanisms for Controlling Market PowerProgrammatic Design Features That Affect Market PowerSummaryMonitoring and EnforcementThe Nature of the Domestic lc‘