Enforcing Emissions Trading Programs |
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| Authors: | John K. Stranlund Carlos A. Chavez Barry C. Field |
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| Affiliation: | John K. Stranlund;is an associate professor in the Department of Resource Economics at the University of Massachusetts-Amherst. Most of his research is focused on the economic theory of environmental policy. Carlos A. Chavez;is an assistant professor in the Department of Economics at the Universidad de Concepcion, Chile. He received his master's degree from Georgetown University and his doctorate from the University of Massachusetts at Amherst. His research is focused on the theory and practice of enforcing market-based environmental policies. Barry C. Field;is a professor of resource economics at the University of Massachusetts-Amherst. He has worked in the areas of natural resource scarcity, land use policy, energy economics, and property rights economics. He is the author of two popular textbooks Environmental Economics: An Introduction and Natural Resource Economics: An Introduction. |
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| Abstract: | Combining an analysis of the compliance incentives faced by firms in an emissions trading program, a comprehensive review of the enforcement strategies employed in Sulfur Dioxide Allowance and the Regional Clean Air Incentives Market (RECLAIM) programs, and a review of the compliance performance of these programs thus far, we are able to propose several practical guidelines for enforcing emissions trading programs. We stress the importance of prevailing market prices for emissions permits in determining compliance incentives, the importance of accurately measuring firms' emissions, and the importance of implementing enforcement strategies that remove the incentives firms may have to falsify emissions reports. |
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