Internationalizing the Role of Domestic Pollution Permit Market

Aparna Guha
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Aparna Guha: Monmouth University
Authors registered in the RePEc Author Service: Aparna Sawhney

Eastern Economic Journal, 1996, vol. 22, issue 4, 449-456

Abstract: This paper examines how a national pollution permit market can be utilized to abate translational pollution. The paper identifies the incentives for a polluted country to retire pollution permits from the pollution permit market of the polluting country, and how this strategy comes close to the first best policy intervention of the international externality problem. As an illustration, the paper analyses potential Canadian participation in the American sulfur dioxide permit market to reduce transborder acid rain. It is demonstrated that a well-functioning as domestic pollution permit market provides an efficient means of controlling transnational pollution.

JEL-codes: Q28 (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:22:y:1996:i:4:p:449-456

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