Collective performance-based trading can be achieved by pairing a team contract with an auction to determine team membership. The auction effectively overcomes adverse selection, and the team contract reduces the incentive to "free-ride" associated with moral hazard in teams.

Point-nonpoint trading markets must accommodate the problem of monitoring individual nonpoint source discharges (NPS). A permit trading market that allows the regulator to monitor noncompliance based on observable aggregate NPS pollution levels, through the use of a collective enforcement...

Theory predicts that incentive-based regulatory instruments reduce compliance costs by encouraging efficient resource allocation and innovation in environmental technology. Cost reductions from pollution permit trading often have exceeded expectations, but the devil is in the details: the rules...

Theory predicts that incentive-based regulatory instruments reduce compliance costs by encouraging efficient resource allocation and innovation in environmental technology. Cost reductions from pollution permit trading often have exceeded expectations, but the devil is in the detail: the rules...