Dr. Helen Neill
Number of Pages
Traditional regulatory approaches for environmental protection do not consider
the costs and benefits of the standards they impose. Further, imposing strict performance
standards on firms with heterogeneous control costs leads to an inefficient allocation of resources devoted to pollution control. This paper explores the use of emission allowance trading as a way to improve economic efficiency within the context of environmental protection. PM10 air pollution from sources within the Las Vegas Valley is used as the case study.
This paper found that an emission trading
program in this particular case study would not live up to the theoretical expectations. Although, emissions trading did show some potential for reducing the amount of money spent to reduce PM10 air pollution, technical problems such as increased monitoring costs, and complicated trading rules would detract the any cost savings that would accrue through allowance trades. In addition, political and legal factors would pose a significant obstacle to implementing the considered trading program.
Although, this particular case study did not prove to be especially conducive to a decentralized regulatory structure, allowance trading proved to be an attractive policy instrument, offering many advantages over traditional regulatory approaches.
Air pollution prevention; Emissions trading economic aspects; Las Vegas Valley (Nev.); Nevada
Environmental Health and Protection | Environmental Sciences
Miller, Mark W., "The Price of clean air: A consideration of market based emissions trading" (1998). UNLV Theses, Dissertations, Professional Papers, and Capstones. 334.