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Pollution markets with imperfectly observed emissions

Pubblicazione


Autore: J.P. Montero

Collana: AA - 2004 Mexico City - Reducing The Impact of Vehicles on Air and Environment Quality in Cities

Note:
Policy makers are paying more attention to pollution markets (tradeable permits) as an alternative to the traditional command and control (CAC) approach of setting emission and technology standards.
A notable example is the 1990 U.S. acid rain program that implemented a nationwide market for electric utilities' sulfur dioxide (SO2) emissions.
In general permit programs has been implemented for large stationary sources (e.g., power plants, refineries) which have been required to install costly continuous monitoring equipment.
Is it possible to use permits to control air pollution in large cities such as Santiago-Chile or Mexico-City that have numerous small (mobile and stationary) polluting sources?
Or is is better to stick to standards given that continuos monitoring is not feasible?


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