First published in 1985, Emissions Trading was a comprehensive review of the first large-scale attempt to use economic incentives in environmental policy in the United States; since its publication it has consistently been one of the most widely cited works in the tradable permits literature....

This work presents an economic analysis of the issues surrounding pollution and the pollution pays principle (PPP) such as the conflict between economics and ecology, externalities, internalization of external costs, solutions to externalities, the economic instruments as recommended by the OECD...

An interesting feature of pollution permit markets is that citizens may purchase permits to directly lower the levels of pollution. We analyze the effects of citizens' demand for permits on incentive compatible mechanisms for pollution control that are based on permit markets. We show that...