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Internationalizing the Role of Domestic Pollution Permit Market

Author

Listed:
  • Aparna Guha

    (Monmouth University)

Abstract

This paper examines how a national pollution permit market can be utilized to abate translational pollution. The paper identifies the incentives for a polluted country to retire pollution permits from the pollution permit market of the polluting country, and how this strategy comes close to the first best policy intervention of the international externality problem. As an illustration, the paper analyses potential Canadian participation in the American sulfur dioxide permit market to reduce transborder acid rain. It is demonstrated that a well-functioning as domestic pollution permit market provides an efficient means of controlling transnational pollution.

Suggested Citation

  • Aparna Guha, 1996. "Internationalizing the Role of Domestic Pollution Permit Market," Eastern Economic Journal, Eastern Economic Association, vol. 22(4), pages 449-456, Fall.
    • Handle: RePEc:eej:eeconj:v:22:y:1996:i:4:p:449-456
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    File URL: http://web.holycross.edu/RePEc/eej/Archive/Volume22/V22N4P449_456.pdf
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    Cited by:

    1. Andrew Yates & Daniel English, 2007. "Citizens' demand for permits and Kwerel''s incentive compatible mechanism for pollution control," Economics Bulletin, AccessEcon, vol. 17(4), pages 1-9.
    2. repec:ebl:ecbull:v:17:y:2007:i:4:p:1-9 is not listed on IDEAS

    More about this item

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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