By Richard Kosobud, Houston Stokes, Carol Tallarico, Brian Scott
Containing rigorous tough facts, this ebook is of titanic functional use to postgraduates, researchers and enterprise groups suffering from or operating in environmental legislation. the writer, a number one identify within the environmental economics group, examines the matter of city smog in cityscapes and the trouble of attaining most economical controls. studying the main components of city smog, low-level ozone and unstable natural compound emissions and their influence on wellbeing and fitness and welfare of groups this article assesses and evaluates the functionality of emissions buying and selling platforms and indicates replacement industry designs for incentive regulate of toxins. Taking a well-reasoned method of the contentious quarter of using marketplace incentives to accomplish environmental pursuits, it offers a research of the pioneering cap-and-trade industry, quite targeting its terrible functionality in Chicago. an ideal supplementary textual content postgraduates and researchers, this can be additionally a necessary learn for all these drawn to environmental economics.
Read or Download Cost-Effective Control of Urban Smog: The Significance of the Chicago Cap-and-Trade Approach (Routledge Explorations in Environmental Economics) PDF
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Additional info for Cost-Effective Control of Urban Smog: The Significance of the Chicago Cap-and-Trade Approach (Routledge Explorations in Environmental Economics)
The regulatory community, in addition to the IEPA, was represented by the regional office of the US EPA. Needless to say, there were contending views on the specific features of the market that were debated over a long period of time, requiring postponement of the start-up date until 2000. There was little discussion of the use of pollutant taxes rather than emissions trading. In circumstances of full information and certainty about market and environmental outcomes, the two decentralized regulatory measures, pollution taxes and emissions trading, can be shown to be equally cost-effective.
This normative theory asserts that in a competitive market with cost-minimizing emitters, the regulating agency allocates quantities of tradable permits to pollute below prevailing levels to achieve desired air quality. These are then allocated to individual emitters according to some agreed upon rule, such as the emitter’s share of pollution. The regulating agency allows emitters to decide on the basis of permit price whether to reduce emissions by any available technique that they choose, to emit and return permits, to trade them, or to bank permits for later use with the objective of stimulating cost-minimizing control choices.
It would disappoint many of the business participants and most academics. It is not clear how the increasing marginal control costs and increasing confrontations brought about from relying solely on traditional regulations are to be avoided, especially in view of the further reductions of VOC emissions required by the new ozone standards. Failure of this pioneering effort would not be an encouraging signal to efforts to make use of market incentives for VOC control in other urban areas, many of them in developing countries.
Cost-Effective Control of Urban Smog: The Significance of the Chicago Cap-and-Trade Approach (Routledge Explorations in Environmental Economics) by Richard Kosobud, Houston Stokes, Carol Tallarico, Brian Scott