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Tradable Discharge Permits: A Student-Friendly Game


  • Amy W. Ando
  • Donna Ramirez Harrington


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.

Suggested Citation

  • Amy W. Ando & Donna Ramirez Harrington, 2006. "Tradable Discharge Permits: A Student-Friendly Game," The Journal of Economic Education, Taylor & Francis Journals, vol. 37(2), pages 187-201, April.
  • Handle: RePEc:taf:jeduce:v:37:y:2006:i:2:p:187-201
    DOI: 10.3200/JECE.37.2.187-201

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    Cited by:

    1. Lynne Y. Lewis, 2011. "Environmental and Natural Resource Economics: Teaching the Non-Major and Major Simultaneously," Chapters,in: International Handbook on Teaching and Learning Economics, chapter 46 Edward Elgar Publishing.

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