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Extending the Debate
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Can the market reduce pollution?

One use of market incentives to reduce pollution described in this chapter is "pollution permits."

  a.Find out about pollution permits in a US state near you. Go to: http://agecon2.tamu.edu/people/faculty/woodward-richard/ET.htm Choose one program to investigate.

If this link doesn't work, try: http://www.epa.gov/air/oaqps/permits/approval.html

  b.What type of pollution will be traded?
 Who will buy and sell the permits to pollute?
 Who will organize this market?
 What are the expected benefits with this program?

However, pollution permits and the trading of the right to pollute is controversial. For a defense of such programs see the National Center for Policy Analysis, a conservative think tank dedicated "to develop and promote private alternatives to government regulation" at http://www.ncpa.org/pi/enviro/envpd/pdenv120.html

For an alternative solution, see Worldwatch a research organization dedicated to an "environmentally sustainable and socially just society" at: http://www.worldwatch.org/press/news/1998/09/12/

  c.What are the strongest arguments in favor and against of tradable pollution permits? (See the textbook and National Center for Policy Analysis.)
 What are the strongest arguments in favor and against of the taxes proposed by Worldwatch?





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