Tradable Discharge Permits: A Student-Friendly Game

Amy Whritenour Ando () and Donna Ramirez
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Donna Ramirez: Department of Agricultural Economics and Business, University of Guelph, Canada

Journal of Economic Education, 2006, vol. 37, issue 2, pages 187-201

Abstract: An in-class game can be used to improve students’ understanding of how a tradable discharge permit (TDP) program might work. There are, however, trade-offs one must face in designing such a game. An exercise might, in theory, demonstrate all the nuances of a TDP program and yet be so complex that students learn little from the experience. The authors develop a game that is easy enough to play that even students with limited backgrounds in economics and math can participate fully. Instructors can use this game to provide a diverse body of students with insights on the relative cost-effectiveness of a permit system over a uniform standard, the nature of permit market equilibrium, and the comparative advantages of different regulatory regimes.

Keywords: instructional game; tradable discharge permit (search for similar items in EconPapers)
JEL-codes: A19 Q53 (search for similar items in EconPapers)
Date: 2006
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