General Background

(Updated in 2/08)

HISTORICAL ORIGINS

Coase, R. (1960). "The Problem of Social Cost." The Journal of Law and Economics 3(October): 1-44.

Crocker, T. D. (1966). The Structuring of Atmospheric Pollution Control Systems. The Economics of Air Pollution. H. Wolozin. New York, W. W.Norton & Co.: 61-86.

Dales, J. H. (1968). "Land, Water and Ownership." Canadian Journal of Economics 1: 791-804.

Dales, J. H. (1968). Pollution, Property and Prices. Toronto, University of Toronto Press.

BASIC THEORY

Baumol, W. J. and W. E. Oates (1971). "The Use of Standards and Prices for Protection of the Environment." Swedish Journal of Economics 73: 42-54.

Baumol, W. J. and W. E. Oates (1975). The Theory of Environmental Policy. Englewood Clifs, N. J., Prentice Hall.

Baumol, W. J. and W. E. Oates (1988). The Theory of Environmental Policy. Cambridge, England, Cambridge University Press.

Becker, N. and M. Shechter (1996). "Decentralized Economic Incentives under Technological Indivisibilities: A Cooperative Game Approach." Ecological Economics 17(1): 9-20.

Borenstein, Severin (1988). "On the Efficiency of Competitive Markets for Operating Licenses." Quarterly Journal of Economics 103(2): 357-385.

Dobos, I. (2007). "Tradable permits and production-inventory strategies of the firm." International Journal of Production Economics 108(1-2): 329-333.

Malueg, David A. (1990). "Welfare Consequences of Emissions Credit Trading Programs." Journal of Environmental Economics and Management 18(1): 66-77.

Montgomery, W. D. (1972). "Markets in Licenses and Efficient Pollution Control Programs." Journal of Economic Theory 5(3): 395-418.

Newell, Richard G. and Robert N. Stavins. 2003. Cost Heterogeneity and Potential Savings from Market-Based Policies. Journal of Regulatory Economics 23(1):43-59. http://www.rff.org/disc_papers/PDF_files/0010rev.pdf

Newell, R. G., K. L. Papps, et al. (2007). "Asset pricing in created markets." American Journal of Agricultural Economics 89(2): 259-272.

MODELING ISSUES

Bˆhringer, C., Rutherford, T.F. (2002): "Carbon Abatement and International Spillovers", Environmental and Resource Economics 22(3), 2002, 391-417.

Bˆhringer, C., Rutherford, T.F. (2002): "Who should pay how much? Compensation for International Spillovers from Carbon Abatement Policies to Developing Countries - A Global CGE Assessment", Computational Economics 23 (1), 2004, 71-103.

Bueler, B. (1997). "Solving an Equilibrium Model for Trade of CO2 Emission Permits." European Journal of Operational Research 102(2): 393-403.

Conrad, K. and M. Schrˆder (1993). "Choosing Environmental Policy Instruments Using General Equilibrium Models." Journal of Policy 15(5-6): 521-43.

Dobos, I. (2005). "The Effects of Emission Trading on Production and Inventories in the Arrow-Karlin model." International Journal of Production Economics 93-94: 301-308.

Haurie, A. and L. Viguier (2003). "A Stochastic Dynamic Game of Carbon Emissions Trading." Environmental Modeling & Assessment 8(3): 239-248.

Johnson, S. L. and D. M. Pekelney (1996). "Economic-Assessment Of the Regional Clean-Air Incentives Market - a New Emissions Trading Program For Los-Angeles." Land Economics 72(3): 277-297.

Andre Grimand, "Pollution Permits and Sustainable Growth in a Schumpeterian Model" Journal of Environmental Economics and Management, Vol. 38, No. 3 (1999): 249-266.

Manne, A. S. and R. G. Richels (1991). "International Trade in Carbon Emission Rights: A Decomposition Procedure." American Economic Review 81(2): 135-39.

Manne, A. S. and T. F. Rutherford (1994). "International Trade in Oil, Gas and Carbon Emission Rights: An Intertemporal General Equilibrium Model." Energy Journal 15(1): 57-76.

Nagurney, A. and K. K. Dhanda (1996). "A Variational Inequality Approach for Marketable Permits." Computational Economics 9(4): 363-84.

Nagurney, A. and D. Zhang (2001). "Dynamics of a Transportation Pollution Permit System with Stability Analysis and Computations." Transportation. Research: Part D: Transportation and the Environment 6(4): 243-68.

Nagurney, A., K.K. Dhanda, et al. (1997). "General Multi-Product, Multi-Pollutant Market Pollution Permit Model: A Variational Inequality Approach." Energy Economics 19(1): 57-76.

Takyi, A. K. and B. J. Lence (1996). "Chebyshev Model for Water-Quality Management." Journal of Water Resources Planning and Management - ASCE 122(1): 40-48.

Yaron, D. (1979). "A Model for the Analysis of Seasonal Aspects of Water Quality Control." Journal of Environmental Economics and Management 6(2): 140-151.

IDEOLOGY

Anderson, T. L. and D. R. Leal (1991). Free Market Environmentalism. San Francisco, Westview Press for the Pacific Research Institute for Public Policy.

Driesen, David. Markets are Not Magic, 20 Environmental Forum 19 (Nov.-Dec. 2003)

Goffman, J. (1993). "Learning to Love Emissions Trading." E Magazine: 54-55.

Goodin, R. E. (1994). "Selling Environmental Indulgences." Kyklos 47(4): 573-96.

Heinzerling, L. (1995). "Selling Pollution, Forcing Democracy." Stanford Environmental Law Journal 14(May): 300-44.

COMPARING INSTRUMENTS

Bohm, P. and C. Russell (1985). Comparative Analysis of Alternative Policy Instruments. Handbook of Natural Resource and Energy Economics. A. V. Kneese and J. L. Sweeney. Amsterdam, North-Holland. 1: 395-460.

Boyd, James, Dallas Burtraw, Alan Krupnick, Virginia McConnell, Richard G. Newell, Karen Palmer, James Sanchirico, and Margaret Walls. 2003. Trading Cases: Is trading credits in created markets a better way to reduce pollution and protect natural and protect natural resources? Environmental Science and Technology 37(11):217-223.

Cole, D. H. and P. Z. Grossman (1999). "When is command-and-control efficient? Institutions, technology and the comparative efficiency of alternative regulatory regimes for environmental protection." (1999): 887-.

Cole, D. H. (2002). Pollution & Property: Comparing Ownership Institutions for Environmental Protection. Cambridge, UK, Cambridge University Press.

Denicolo, V. (1999). "Pollution-Reducing Innovations under Taxes or Permits." Oxford Economic Papers 51(1): 184-99.

Driesen, David. (1998). " "Is Emissions Trading an Economic Incentive Program?: Replacing the Command and Control/Economic Incentive Dichotomy," Washington & Lee Law Review 55: 289-.

Driesen, David. Choosing Environmental Instruments in Transnational Legal Context, 27 Ecology Law Quarterly 1 (2000)

Driesen, David. What's Property Got to Do With It?, 30 Ecology Law Quarterly 1003 (2003)

Farrow, Scott (1995). "The Dual Political Economy of Taxes and Tradable Permits." Economics Letters 49(2): 217-220.

Farrow, Scott, 1999. The Duality of Taxes and Tradeable Permits: A Survey with Applications in Central and Eastern Europe. Environmental and Development Economics 4:519-535.

Freeman, J. and C. Kolstad, Eds. (2007). Moving to Markets: Lessons from Twenty Years of Experience. New York, Oxford University Press.

Hahn, R. W. (1989). "Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor's Orders." The Journal of Economic Perspectives 3(2): 95-114.

Hahn, R. W. and R. L. Axtell (1995). "Reevaluating the Relationship between Transferable Property Rights and Command-And-Control Regulation." Journal of Regulatory Economics 8(2): 125-48.

Hagem, C. (2003). "The Merits of Non-tradable Quotas as a Domestic Policy Instrument to Prevent Firm Closure." Resource and Energy Economics 25(4): 373-386.

Helfand, Gloria E. and Jonathan Rubin (1994). "Spreading versus Concentrating Damages: Environmental Policy in the Presence of Nonconvexities." Journal of Environmental Economics and Management 27(1): 84-91.

OECD (1989). Economic Instruments for Environmental Protection. Paris, Organization for Economic Cooperation and Development.

Opschoor, J. B. (1994). Developments in the Use of Economic Instruments in OECD Countries. Economic Instruments for Air Pollution Control. G. Klaassen and F. R. F¯rsund. Boston, Kluwer Academic Publishers: 75-106.

Opschoor, J. B. and H. B. Vos (1989). Economic Instruments for Environmental Protection. Paris, Organization for Economic Co-operation and Development.

Opschoor, J. B. and H. B. Vos (1989). The Application of Economic Instruments for Environmental Protection in OECD Countries. Paris, OECD.

O'Ryan, R. E. (2006). "Factors the Determine the Cost-Effectiveness Ranking of Second-Best Instruments for Environmental Regulation." Journal of Regulatory Economics 30(2): 179-198.

Pezzey, J. (1992). "The Symmetry Between Controlling Pollution by Price and Controlling it by Quantity." The Canadian Journal of Economics 25(4): 983-991.

Pezzey, J. C. V. (2003). "Emission Taxes and Tradeable Permits - A Comparison of Views on Long-run Efficiency." Environmental and Resource Economics 26(2): 329-342.

Potts, E. R. (1999). "EA Proposal for an Alternative to the Private Enforcement of Environmental Regulations and Statutes Through Citizen Suits: Transferable Property Rights in Common Resources." San Diego Law Review 36: 547-.

Requate, T. (1998). "Incentives to Innovate under Emission Taxes and Tradeable Permits." European Journal of Political Economy 14(1): 139-65.

Rose, C. M. (1998). "The several futures of property: Of cyberspace and folk tales, emission trades and ecosystems." Minnesota Law Review 83(1): 129.

Stavins, R. N. (2003). Experience with market based environmental policy instruments. Handbook of Environmental Economics, Vol 1. K. G. Maler and J. R. Vincent, ed.s (Elsevier Science): 355-435.

Tietenberg, T. H. (1990). "Economic Instruments for Environmental Regulation." Oxford Review of Economic Policy 6(1): 17-33.

Tisato, P. and C. Allen (1993). "Taxes and Marketable Permits in Pollution Control." Economic Papers 12(1): 83-86.

Wiener, J. B. (1999). "Global Environmental Regulation: Instrument Choice in Legal Context." Yale Law Journal 108(4): 677-800.

Wiener, J. B. (1999). "On the Political Economy of Global Environmental Regulation." The Georgetown Law Journal 87(3): 749-794.

Zhao, J. (2003). "Irreversible Abatement Investment under Cost Uncertainties: Tradable Emission Permits and Emissions Charges." Journal of Public Economics 87(12): 2765-2789.

TEACHING

Anderson, L. R. a. S. L. S. (2000). "Choosing Winners and Losers in a Classroom Permit Trading Game." 67(1): 212-219.

Ando, A. W. and D. R. Harrington (2006). "Tradable Discharge Permits: A Student-Friendly Game." Journal of Economic Education 37(2): 187-201.

Fouquet, R. (2003) 'The Carbon Trading Game.' Climate Policy (special Emissions Trading issue) 3(2) 143-55.

Hazlett, D. (2005). "Global Trade in CO2 Permits: A Classroom Experiment." Perspectives on Economic Education Research 1(1): 18-43.

Nugent, Rachel A.(1997). "Teaching Tools: A Pollution Rights Trading Game." Economic Inquiry 35(3): 679-685.

ETHICS

Black, N. D. (1997). "Balancing the Advantages of Individual Transferable Quotas Against Their Redistributive Effects: The Case of Alliance Against IFQs v. Brown." Georgetown International Law Review 9(Spring)): 727-746.

Chinn, L. N. (1999). "Can the Market be Fair and Efficient? An Environmental Justice Critique of Emissions Trading." Ecology Law Quarterly 26(1): 80-125.

Goodin, R. E. (1994). "Selling Environmental Indulgences." Kyklos 47(4): 573-96.

Nash, J. R. (2000). "Too Much Market? Conflict Between Tradable Pollution Allowances and the ''Polluter Pays'' Principle." Harvard Environmental Law Review 24(2): 465-535.

Slolomon, B. D. and R. Lee (2000). "Emissions Trading Systems and Environmentalal Justice." Environment 42(8): 32-45.

Tietenberg, T. H. (1998). "Ethical Influences on the Evolution of the US Tradeable Permit Approach to Pollution Control." Ecological Economics 24(2,3): 241-257.

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