Jump to ContentJump to Main Navigation
Moving to Markets in Environmental RegulationLessons from Twenty Years of Experience$
Users without a subscription are not able to see the full content.

Jody Freeman and Charles D. Kolstad

Print publication date: 2006

Print ISBN-13: 9780195189650

Published to Oxford Scholarship Online: January 2007

DOI: 10.1093/acprof:oso/9780195189650.001.0001

Show Summary Details
Page of

PRINTED FROM OXFORD SCHOLARSHIP ONLINE (www.oxfordscholarship.com). (c) Copyright Oxford University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in OSO for personal use. date: 28 January 2020

 Are Cap‐and‐Trade Programs More Environmentally Effective than Conventional Regulation?

 Are Cap‐and‐Trade Programs More Environmentally Effective than Conventional Regulation?

Chapter:
(p.48) 3 Are Cap‐and‐Trade Programs More Environmentally Effective than Conventional Regulation?
Source:
Moving to Markets in Environmental Regulation
Author(s):

Ellerman A. Denny

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780195189650.003.0003

This essay explains why cap-and-trade programs (in which government establishes an overall cap on pollution but allows firms to trade allocations beneath the cap) can be both more economically efficient and more environmentally effective than prescriptive regulation. It underscores the importance of measuring effectiveness in ex post evaluations, which are defined as achieving the proximate goal (i.e., of emissions reduction), rather than the larger goal of solving the underlying problem (i.e., unhealthy air). The argument in favor of market instruments is supported with data from three emissions trading programs: the SO2 trading regime in Title IV of the Clean Air Act, the NOx budget program created by the EPA to address interstate ozone migration, and the RECLAIM program created by the South Coast Air Quality Management District in Southern California. It is proposed that market instruments represent a new pragmatism in environmental regulation and that they are part of the maturation of the regulatory process.

Keywords:   environmental policy, ex post evaluations, emissions trading, market instruments, Clean Air Act, RECLAIM program, NOx budget, SO2 trading

Oxford Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs , and if you can't find the answer there, please contact us .