Correct (and Misleading) Arguments for Market-Based Pollution Control Policies.

Karp, Larry

from ARE Update Vol. 11, No. 6, July/Aug, 2008

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Abstract

The extent to which climate change policy will rely on market-based rather than command-and-control policies is a matter of current debate. This research shows why neither policy, in general, has a greater claim to being “environmentally friendly.” However, market-based policies eliminate a type of regulatory uncertainty that arises under command-and-control policies. In addition, the anticipation that the regulator will use market-based policies leads to investment decisions that increase the value of markets.

Keywords

climate change policy, market-based policies, command-and-control policies

Citation

Karp, Larry. "Correct (and Misleading) Arguments for Market-Based Pollution Control Policies." ARE Update 11(6)(2008):1-3. University of California Giannini Foundation of Agricultural Economics.
http://giannini.ucop.edu/publications/are-update/issues/2008/11/6/correct-and-misleading-ar/