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Efficiency and Distributional Aspects of Market Mechanisms in the Control of Pollution: An Empirical analysis

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  • Hanley Hanley

Abstract

The cost-saving advantages of market mechanisms such as tradable permits and emission taxes have been promoted by economists since the early 1970s. The research reported in this paper simulates their application to the Forth Estuary in Scotland comparing such policies with regulation of output levels for emissions. Potential resource cost savings are identified under two alternative targets. However, there are serious obstacles to the attainment of these savings. We also consider the distributional aspects of the policy alternatives.

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File URL: http://qed.econ.queensu.ca/working_papers/papers/qed_wp_842.pdf
File Function: First version 1992
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Bibliographic Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 842.

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Date of creation: Jan 1992
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Handle: RePEc:qed:wpaper:842

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Keywords: water pollution control: tradable permits; emission taxes; biological oxygen demand;

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Cited by:
  1. Kampas, Athanasios & Mamalis, Spyridon, 2006. "Assessing the Distributional Impacts of Transferable Pollution Permits: The Case of Phosphorus Pollution Management at a River Basin Scale," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 7(2), August.
  2. Kjell Sunnevåg, 2003. "Auction Design for the Allocation of Emission Permits in the Presence of Market Power," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(3), pages 385-400, November.
  3. Kampas, Athanasios & White, Ben, 2003. "Selecting permit allocation rules for agricultural pollution control: a bargaining solution," Ecological Economics, Elsevier, vol. 47(2-3), pages 135-147, December.
  4. Dafna Eshel, 2005. "Optimal Allocation of Tradable Pollution Rights and Market Structures," Journal of Regulatory Economics, Springer, vol. 28(2), pages 205-223, 09.
  5. Nils-Henrik Mørch von der Fehr, 1993. "Tradable emission rights and strategic interaction," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(2), pages 129-151, April.
  6. Tao Wang, 2006. "Cost Effectiveness in River Management: Evaluation of Integrated River Policy System in Tidal Ouse," Working Papers 2006.142, Fondazione Eni Enrico Mattei.

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