Implementing Domestic Tradable Permits for Environmental Protection

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OECD Publishing, Aug 10, 1999 - 256 pages
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The use of tradable permit systems for the protection of the environment is attracting growing interest in many countries and on the international scene. While the United States’ practice has been extensively analysed, relatively little is known of experiments in other countries. This book reviews the issues related to the implementation of domestic tradable permits systems in different areas (air, water, land) and in several OECD countries. It addresses key questions such as : what lessons can be drawn from existing experience? Why has the introduction of tradable permits failed in some instances? How can tradable permits be combined with other policy instruments such as taxes? What are the competitiveness implications of tradable permit systems? Not only should the lessons drawn from existing experience help the further use of domestic systems, it should also provide helpful insights for the possible implementation of tradable permits at the international level, in particular for managing greenhouse gases.

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Contents

Summary and Conclusions
9
Special issues
15
the US Experience
23
Major existing programmes
33
Recent programmes
40
Notes
48
Chapter III
53
origins and applications
57
the Case of Norway
127
Trading systems as part of a framework of environmental instruments
136
the Case of Poland
147
The Chorz6w project
154
Summary conclusions and policy recommendations
161
the Case of Switzerland
167
Project to introduce a system of emission trading in the Canton of Valais
177
Sulphur Permit Quota Switching
183

Some thoughts on evaluation
65
References
72
Chapter IV
75
Tradable water abstraction rights
80
Tradable water pollution rights
90
Discussion and Conclusion
98
Notes
104
Chapter V
109
Particular implementation problems obstacles to successful implementation including any problems
113
Concluding comments
120
The UK quotaswitching proposal problems and subsequent developments
190
Lessons
193
The Compatibility of Tradable Permits with other Environmental Policy Instruments
199
Conditions for successful policy innovation
207
Compatibility with other market mechanisms
214
a Review of Issues and Evidence
221
Distribution of costs and savings
229
Tradable permits and dynamic competitiveness effects
236
the political economy of permit systems
243
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