Joskow, Paul L; Schmalensee, Richard; Bailey, Elizabeth M - In: American Economic Review 88 (1998) 4, pp. 669-85
The 1990 Clean Air Act Amendments initiated the first large-scale use of the tradable permit approach to pollution control. The theoretical case for this approach rests on the assumption of an efficient market for emission rights. The authors' empirical analysis shows that the emission rights...