Market-Based Mechanisms for Environmental Improvement

  • Jay S. Coggins
  • Paolo Rosato

Summary

Market-based mechanism for pollution control are becoming more popular both in the environmental economics literature and in the real-world policymaking. This paper contains a review of the ideas behind these mechanisms. A brief example illustrates the appeal of both effluent taxes and permit-trading schemes, and compares and contrasts the two. This is followed by a review of some of the market-based schemes in use around the world. The paper finishes with a summary of performance in the U.S. sulphur dioxide allowance-trading market.

Keywords

Dioxide Europe Assure Gasoline Arena 

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Copyright information

© Springer Science+Business Media New York 2002

Authors and Affiliations

  • Jay S. Coggins
    • 1
  • Paolo Rosato
    • 2
  1. 1.Department of Applied EconomicsUniversity of MinnesotaUSA
  2. 2.Department of Civil EngineeringUniversity of TriesteItaly

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