The policy challenges of tradable credits: A critical review of eight markets

摘要: This article offers a critical review of eight tradable permit markets: water permits at Fox River, Wisconsin; the U.S. leaded gasoline phase-out; sulfur dioxide credits under Clean Air Act Amendments 1990; Regional Incentives Market (RECLAIM) for controlling ozone and acid rain in Southern California; renewable energy credit trading regional level United States; individual transferrable quotas fisheries national New Zealand; carbon traded European Union-Emissions Trading Scheme; offsets permitted Development Mechanism Kyoto Protocol. By “critical” does not fully weigh costs benefits each scheme instead identifies key challenges problems. “review” author relied exclusively on secondary data from an interdisciplinary academic literature. Rather than performing as economic theory suggests, shows that many cases markets are prone to compromises program design, transaction costs, price volatility, leakage, environmental degradation. The concludes by discussing implications these problems those seeking design more equitable effective public policies addressing degradation climate change.