Tradable Discharge Permits: A Student-Friendly Game
Abstract: An in-class game can be used to improve students' understanding of how a tradable discharge permit (TDP) program might work. There are, however, trade-offs one must face in designing such a game. An exercise might, in theory, demonstrate all the nuances of a TDP program and yet be so complex that students learn little from the experience. The authors develop a game that is easy enough to play that even students with limited backgrounds in economics and math can participate fully. Instructors can use this game to provide a diverse body of students with insights on the relative cost-effectiveness of a permit system over a uniform standard, the nature of permit market equilibrium, and the comparative advantages of different regulatory regimes.
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Volume (Year): 37 (2006)
Issue (Month): 2 (April)
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