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Tradable permits for environmental protection: Case study of an integrated steel plant in India

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  • Pandey, Rita

    ()
    (National Institute of Public Finance and Policy)

  • Bhardwaj, Geetesh

    (National Institute of Public Finance and Policy)

Abstract

Cost effective policies allow minimising the compliance costs associated to reaching a desired environmental quality target. In this paper a conceptual model has been developed to examine the compliance costs under an intra-plant emission trading system for a non-uniformly mixed assimilative pollutant. The model incorporates the number of emission sources, the concentration of pollutants emitted at each source, the marginal cost of abatement for each source, the transfer coefficient that relates emission at each source with the impact on ambient air quality, and the desired ambient air quality target. The model is applied to an integrated steel plant in India. Results of this study demonstrate that the emission trading is more cost effective than the existing regulatory system. Further, intra-plant trades would result in significant savings to the steel plant while securing an improvement in ambient air quality in the studied geographical area.

(This abstract was borrowed from another version of this item.)

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File URL: http://www.nipfp.org.in/working_paper/wp_2000_2.pdf
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Bibliographic Info

Paper provided by National Institute of Public Finance and Policy in its series Working Papers with number 00/2.

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Length: 18
Date of creation: Dec 2000
Date of revision:
Handle: RePEc:npf:wpaper:00/2

Note: Working Paper 2, 2000
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Web page: http://www.nipfp.org.in

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  1. Atkinson, Scott E. & Tietenberg, T. H., 1982. "The empirical properties of two classes of designs for transferable discharge permit markets," Journal of Environmental Economics and Management, Elsevier, vol. 9(2), pages 101-121, June.
  2. Bohm, Peter & Russell, Clifford S., 1985. "Comparative analysis of alternative policy instruments," Handbook of Natural Resource and Energy Economics, in: A. V. Kneeseā€  & J. L. Sweeney (ed.), Handbook of Natural Resource and Energy Economics, edition 1, volume 1, chapter 10, pages 395-460 Elsevier.
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