Tradable Discharge Permits: A Student-Friendly Game

Amy Ando and Donna Ramirez Harrington

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

Abstract: 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.

Date: 2006
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DOI: 10.3200/JECE.37.2.187-201

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