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| Author: | Ahlheim, M. Schneider, F. |
| Title: | Allowing for Household Preferences in Emission Trading |
| Journal: | Environmental and Resource Economics
2002 : APR, VOL. 21:4, p. 317-342 |
| Index terms: | TRADE ECONOMICS CONSUMERS PREFERENCES POLICY ENVIRONMENTAL POLICY |
| Language: | eng |
| Abstract: | In the context of emission trading it seems to be taken as given that people's preferences can be ignored with respect to the whole process of fixing emission targets and allocating emission permits to polluters. With this paper the authors want to reopen the debate on how citizens can be involved in this process. The authors try to show how citizen preferences can be included in the process of pollution control through emission trading. The authors propose an emission trading system where all emission permits are initially allocated to households who are then allowed to sell them in the permit market or to withhold (at least some of) them in order to reduce total pollution. This proposal tries to overcome the fundamental disadvantage of traditional permit systems which neglect consumer preferences. |
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