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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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    References listed on IDEAS

    1. Mieszkowski, Peter & Zodrow, George R, 1989. "Taxation and the Tiebout Model: The Differential Effects of Head Taxes, Taxes on Land Rents, and Property Taxes," Journal of Economic Literature, American Economic Association, vol. 27(3), pages 1098-1146, September.
    2. Edward Clarke, 1971. "Multipart pricing of public goods," Public Choice, Springer, vol. 11(1), pages 17-33, September.
    3. John D. Donahue, 1997. "Tiebout? Or Not Tiebout? The Market Metaphor and America's Devolution Debate," Journal of Economic Perspectives, American Economic Association, vol. 11(4), pages 73-81, Fall.
    4. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
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    6. repec:cup:apsrev:v:89:y:1995:i:03:p:705-709_09 is not listed on IDEAS
    7. Theodore Groves & John Ledyard, 1977. "Some limitations of demand revelaing processes," Public Choice, Springer, vol. 29(2), pages 107-124, March.
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    9. Rubinfeld, Daniel L & Shapiro, Perry & Roberts, Judith, 1987. "Tiebout Bias and the Demand for Local Public Schooling," The Review of Economics and Statistics, MIT Press, vol. 69(3), pages 426-437, August.
    10. Kollman, Ken & Miller, John H & Page, Scott E, 1997. "Political Institutions and Sorting in a Tiebout Model," American Economic Review, American Economic Association, vol. 87(5), pages 977-992, December.
    11. Groves, Theodore, 1973. "Incentives in Teams," Econometrica, Econometric Society, vol. 41(4), pages 617-631, July.
    12. Brueckner, Jan K., 2000. "A Tiebout/tax-competition model," Journal of Public Economics, Elsevier, vol. 77(2), pages 285-306, August.
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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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