search query: @indexterm free riders / total: 14
reference: 4 / 14
Author: | Hung, M.-F. Shaw, D. |
Title: | A trading-ratio system for trading water pollution discharge permits |
Journal: | Journal of Environmental Economics and Management
2005 : JAN, VOL. 49:1, p. 83-102 |
Index terms: | free riders trade transaction costs |
Language: | eng |
Abstract: | By utilizing the fact that water flows to the lowest level uni-directionally, the authors design a trading-ratio system (TRS) of tradable discharge permits for water pollution control. Such a trading-ratio system has three main characteristics: (1) the zonal effluent cap is set by taking into account the water pollutant loads transferred from the upstream zones; (2) the trading ratios are set equal to the exogenous transfer coefficients among zones; and (3) permits are freely tradable among dischargers according to the trading ratios. This paper suggests that the TRS can take care of the location effect of a discharge and can achieve the predetermined standards of environmental quality at minimum aggregate abatement cost. |
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