| Paper Title: |
A Trading-Ratio System For Trading Water Pollution Discharge Permits |
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| Presenting Author: | Daigee Shaw (Academia Sinica) | ||
| Coauthor 1: | Ming-Feng Hung | ||
| Coauthor 2: | |||
| Coauthor 3: | |||
| Abstract: |
The fact that water flows to the lowest level uni-directionally is a very specific and useful property of water. By utilizing this property, we design a trading-ratio system (TRS) of tradable discharge permits for water pollution control. Such a trading-ratio system has three main characteristics: (1) each zone’s effluent cap is set by taking into account the water pollution loads transferred from the upstream zones; (2) the trading ratios are set equal to the reciprocals of the exogenous transfer coefficients among zones; and (3) permits are freely tradable among dischargers according to the trading ratios. This paper shows that the TRS could take care of the location effect of a discharge and could achieve the predetermined standards of environmental quality at minimum aggregate abatement costs. Problems with hot spots and free riding could be avoided, and the burdens on both dischargers and the environmental authority would be comparatively more modest.
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| Link to paper: | http://weber.ucsd.edu/~carsonvs/papers/100.pdf | ||
| Session / Day / Time | 10H / Wednesday / 10:15 - 11:45 am | ||
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