introduction water quality trading (wqt) is an economically incentive-based strategy that focuses on finding the optimal discharge permit market for surface water quality management. the amounts of traded discharge permits determine the interactions of emission sources in the market. pollutantsthat are able to provide extra permits can satisfy the demands of other participants for credits. find...

This paper employs analytical and numerical general equilibrium models to examine the costs of achieving pollution reductions under a range of environmental policy instruments in a second-best setting with pre-existing factor taxes. We compare the costs and overall efficiency impacts of emissions taxes, emissions quotas, fuels taxes, performance standards, and mandated technologies, and explore...

The paper focuses on the macroeconomic and sectoral effects on developing countries (which have no emission abatement targets) of abatement actions in developed countries. The importance of the Kyoto mechanisms in minimising these impacts is examined in the analysis, with an emphasis on the importance of emissions trading in reducing abatement costs. Lower economic costs, in turn, reduce the im...

This paper answers three questions related to the discrete nature of pollution abatement: (i) does a source's incremental control cost (as defined by the U.S. Environmental Protection Agency) necessarily exceed its average control cost, (ii) is incremental control cost a better approximation of a source's willingness to pay for abatement credits than average control cost, and (iii) exactly how ...