Toward an Effective Watershed-Based Effluent Allowance Trading System: Identifying the Statutory and Regulatory Barriers to Implementation
Environmental Lawyer, Vol. 5, Pp. 775-815, 1999
Posted: 13 Jun 2000
Effluent allowance trading is increasingly being proposed as one means to improve management of effluent discharge into the waters of the United States. Despite the growing enthusiasm, this paper argues that the current statutory and regulatory framework of the Clean Water Act will limit the economic and environmental potential of market-like trading systems.
The paper first describes the characteristics of a market system for effluent discharge allowances. Next, a number of features of the Clean Water Act (and the regulatory behavior motivated by the statutory framework) are identified that undermine the creation and development of market-like effluent allowance trading systems. While several pilot programs have been described as trading, we argue these programs are better described as extensions of the regulatory authority of the Clean Water Act. Examples of more market-like systems have been implemented but only when the more restrictive provisions of the Clean Water Act can be avoided. We conclude by identifying the changes to the Clean Water Act that would facilitate the creation of effluent allowance trading systems.
Note: This is a description of the paper and is not the actual abstract.
Suggested Citation: Suggested Citation