This paper explores the role for economic instruments in the control of global warming. It begins with a review of what theory and practice have taught us about these instruments--pollution taxes and systems of transferable permits--in the pursuit of domestic environmental management. It then...

Two prominent economists comment on the bitter, divisive, and passionate debate on the proper direction of environmental policy.

This primer highlightsboth the strengths and the limitations of benefit-cost analysis in the development, design, and implementation of regulatory reform.

In September 2011, the US Environmental Protection Agency asked 12 economists how the benefits and costs of regulations should be discounted for projects that affect future generations. This paper summarizes the views of the panel on three topics: the use of the Ramsey formula as an organizing...

In September 2011, the US Environmental Protection Agency asked 12 economists how the benefits and costs of regulations should be discounted for projects that affect future generations. This paper summarizes the views of the panel on three topics -- the use of the Ramsey formula as an organizing...

We experimentally study auctions versus grandfathering in the initial assignment of pollution permits that can be traded in a secondary spot market. Low and high emitters compete for permits in the auction, whereas permits are assigned for free under grandfathering. In theory, trading in the...

"Energy efficiency and conservation are considered key means for reducing greenhouse gas emissions and achieving other energy policy goals, but associated market behavior and policy responses have engendered debates in the economic literature. We review economic concepts underlying consumer...