This paper is the Presidential Address to the Sixteenth Annual Convention of the Eastern Economic Association. It offers some reflections on the role that economics has, and can, play in the determination of environmental policy. These reflections address the choice of policy instruments for...

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...