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Tradable Discharge Permits: A Student-Friendly Game

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  • Amy W. Ando
  • Donna Ramirez Harrington

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.

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File URL: http://hdl.handle.net/10.3200/JECE.37.2.187-201
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal The Journal of Economic Education.

Volume (Year): 37 (2006)
Issue (Month): 2 (April)
Pages: 187-201

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Handle: RePEc:taf:jeduce:v:37:y:2006:i:2:p:187-201

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