Regulation in Environmental Markets: What can we learn from Experiments to Reduce Salinity?
AbstractMarket based mechanisms are growing in importance in environmental policy making. In theory market based mechanisms equate marginal abatement costs between polluting sources, thereby allocating emissions control responsibility at least cost. The step from theory to field implementation is, however, difficult, as many aspects of policy must be made operational at the same time. Policy mistakes can be very costly to society and are extremely difficult to correct ex-post. Experimental Economics is an innovative method beginning to be used to design, test and illustrate public policy prior to field implementation. In this paper we discuss two types of market incentives, taxes and tradable emissions permits. We then illustrate an experiment being implemented to test these market mechanisms for the management of salinity in the Murray Darling Basin.
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Bibliographic InfoPaper provided by Australian Agricultural and Resource Economics Society in its series 2005 Conference (49th), February 9-11, 2005, Coff's Harbour, Australia with number 137857.
Date of creation: 2005
Date of revision:
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Tradable emission permits; Externality taxes; Experiments; Environmental policy.; Environmental Economics and Policy; Land Economics/Use; Public Economics; Q24; Q28; C9;
Other versions of this item:
- Charlotte Duke & Lata Gangadharan, 2005. "Regulation in Environmental Markets: What Can We Learn from Experiments to Reduce Salinity?," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 38(4), pages 459-469, December.
- Q24 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Land
- Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
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