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Designing More Efficient Markets: Lessons from Los Angeles Smog Control Author info | Abstract | Publisher info | Download info | Related research | Statistics Foster, Vivien
Hahn, Robert W
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Market-based approaches for environmental protection are beginning to take root around the world. This article attempts to improve our understanding of the performance of environmental markets by constructing and evaluating an information base on trades in Los Angeles, which includes the first detailed data on trading prices. The analysis suggests that trading activity has been shaped by the detailed regulations governing the market. In addition, transaction costs have played a crucial role. We argue that the move toward adopting market-based approaches for environmental protection needs to be accompanied by a vigorous effort to assess the properties of these systems as they are actually implemented. Copyright 1995 by the University of Chicago.
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Article provided by University of Chicago Press in its journal Journal of Law & Economics .
Volume (Year): 38 (1995)
Issue (Month): 1 (April)
Pages: 19-48
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Handle: RePEc:ucp:jlawec:v:38:y:1995:i:1:p:19-48Contact details of provider: Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637 Fax: (773) 753-0811 Email: Web page: http://www.journals.uchicago.edu/JLE/
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