What Can We Learn from the Grand Policy Experiment? Positive and Normative Lessons from SO2 Allowance Trading

摘要: Over the past twenty-five years, political process has gradually become more receptive to market-based instruments. By far most ambitious application of these instruments been for control acid rain under Title IV Clean Air Act amendments 1990, which established a sulfur dioxide (SO2) allowance trading program intended cut nationwide electric utility emissions by 50 percent year 2000. This essay seeks identify lessons that can be learned from this grand experiment in economically oriented environmental policy. We begin with very brief description SO2 system and its performance date. examine positive economy program's enactment addressing three questions. Why have conventional, command-and-control dominant form regulation? When approaches used, why chosen always freely distributed (grandfathered) tradeable rights? And was adopted acid-rain 1990? also consider normative design performance, organizing into four categories: policy; implementation permit systems; analysis prospective identifying new applications. In final section, we offer some conclusions.