Marketable Permits: What's all the Fuss About?*

Robert Hahn

Journal of Public Policy, 1982, vol. 2, issue 4, 395-411

Abstract: The command and control approach to government regulation of pollution is clearly not working for many problems. While the theoretical case for applying market mechanisms to control pollution as an alternative is persuasive, there are several stumbling blocks which arise in their application. This paper examines some of the key implementation issues which must be addressed in designing a marketable permit scheme. The issues are brought into focus by considering a particular example – the control of sulfur oxides emissions in Los Angeles.

Date: 1982
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