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The Tradable-Permits Approach to Protecting the Commons: Lessons for Climate Change

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  • Tom Tietenberg
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    Abstract

    Tradable-permit approaches for rationing access to the commons have been applied to many different types of resources in many different countries. This essay reviews the experience with three main applications of tradable-permit systems--air-pollution control, water supply, and fisheries management--as well as some unique related programmes. The purpose of the review is to draw together what we have learned about tradable permits in practice that might offer some useful insights for the implementation of the three tradable-permit mechanisms that are part of the Kyoto Protocol. Copyright 2003, Oxford University Press.

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    Bibliographic Info

    Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

    Volume (Year): 19 (2003)
    Issue (Month): 3 ()
    Pages: 400-419

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    Handle: RePEc:oup:oxford:v:19:y:2003:i:3:p:400-419

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    Web page: http://oxrep.oupjournals.org/

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    Cited by:
    1. Nie, Yu (Marco) & Yin, Yafeng, 2013. "Managing rush hour travel choices with tradable credit scheme," Transportation Research Part B: Methodological, Elsevier, vol. 50(C), pages 1-19.
    2. Dionisios Latinopoulos & Eftichios Sartzetakis, 2013. "Using tradable water permits in irrigated agriculture," Discussion Paper Series 2013_04, Department of Economics, University of Macedonia, revised Dec 2013.
    3. Barbara Buchner & Carlo Carraro & A. Denny Ellerman, 2006. "The Allocation of European Union Allowances: Lessons, Unifying Themes and General Principles," Working Papers 0615, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
    4. John K. Stranlund & Wei Zhang, 2007. "Bankruptcy Risk and the Performance of Tradable Permit Markets," Working Papers 2007-9, University of Massachusetts Amherst, Department of Resource Economics.
    5. Pizer, William & Kruger, Joseph, 2004. "The EU Emissions Trading Directive: Opportunities and Potential Pitfalls," Discussion Papers dp-04-24, Resources For the Future.
    6. Kruger, Joseph, 2005. "From SO2 to Greenhouse Gases: Trends and Events Shaping Future Emissions Trading Programs in the United States," Discussion Papers dp-05-20, Resources For the Future.
    7. John Stranlund & Carlos Chávez, 2013. "Who should bear the administrative costs of an emissions tax?," Journal of Regulatory Economics, Springer, vol. 44(1), pages 53-79, August.
    8. Sovacool, Benjamin K., 2011. "The policy challenges of tradable credits: A critical review of eight markets," Energy Policy, Elsevier, vol. 39(2), pages 575-585, February.
    9. He, Fang & Yin, Yafeng & Shirmohammadi, Nima & Nie, Yu (Marco), 2013. "Tradable credit schemes on networks with mixed equilibrium behaviors," Transportation Research Part B: Methodological, Elsevier, vol. 57(C), pages 47-65.
    10. Miola, A. & Marra, M. & Ciuffo, B., 2011. "Designing a climate change policy for the international maritime transport sector: Market-based measures and technological options for global and regional policy actions," Energy Policy, Elsevier, vol. 39(9), pages 5490-5498, September.
    11. M. Fadaee & L. Lambertini, 2011. "Using Auctions for Pollution Rights as Indirect Incentives for Investments in Green Technologies," Working Papers wp729, Dipartimento Scienze Economiche, Universita' di Bologna.
    12. Rose, Adam & Wei, Dan, 2008. "Greenhouse gas emissions trading among Pacific Rim countries: An analysis of policies to bring developing countries to the bargaining table," Energy Policy, Elsevier, vol. 36(4), pages 1420-1429, April.

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