Emissions Trading, An Exercise in Reforming Pollution Policy

By T. H. Tietenberg | Go to book overview
Save to active project

2 /The Conceptual Framework

Why have emission reduction credits become the centerpiece of environmental policy reform? To answer this question, as well as to provide a basis for evaluating how successful the reforms have been, some notion of an optimal mechanism for allocating control responsibility must be defined. This mechanism can then serve as one of the benchmarks against which the existing system can be measured.

As is well known in the economics literature, the mechanism that is most closely related to the emissions trading program is the transferable discharge permit (TDP) market. Under fairly general conditions TDP markets encourage rapid compliance with a cost-effective allocation of the control responsibility. Because the emissions trading program created by EPA is a special case of this more general approach, the large amount of analysis which has been directed toward the former can be used profitably to understand, evaluate, and create an agenda for reform of the latter.


There are two principal participants in the process to regulate the amount of pollution in the nation's air. While the regulatory authority has the statutory responsibility for meeting pollution targets, the human sources of the pollutant (such as industries, automobile drivers, etc.) must ultimately take the actions which will reduce pollution sufficiently to meet the target.


Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Cite this page

Cited page

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited page

Bookmark this page
Emissions Trading, An Exercise in Reforming Pollution Policy


Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen
/ 226

matching results for page

Cited passage

Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?