This paper studies a market in pollution permits launched in Los Angeles in 1994. This tradable permit market has been projected to lead to substantial cost savings due to the flexibility it provides firms in terms of compliance with environmentarl egulation. This paper shows that transaction costs can play an important role in the initial years of the program. The transaction cost variables have been defined to include search costs and information costs. These costs are significant in explaining non-participation of some firms in the market. The study also draws policy implications for the development of future emissions trading programs.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Publisher Info
Article provided by University of Wisconsin Press in its journal Land Economics.
For technical questions regarding this item, or to correct its listing, contact: ().
Related research
Keywords:
Find related papers by JEL classification: Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)