Market-Based Solutions to Environmental Problems: Discussion

Posted: 10 Jan 2001

See all articles by Richard T. Woodward

Richard T. Woodward

Texas A&M University - Department of Agricultural Economics

Abstract

There is rapidly growing interest in the use of market-based (MB) instruments in environmental policy. The papers in this session discuss three relatively new areas for such policies: groundwater contamination, nonpoint source surface-water pollution and carbon sequestration. The papers point out the potential for MB policies in these areas, but significant challenges remain. This comment highlights challenges related to five issues: monitoring and enforcement, trading ratios, baselines, transaction costs, and risk and uncertainty. All these issues must be addressed before MB policies can take the full step from economic theory to regulatory reality.

Keywords: global warming, carbon sequestration, groundwater contamination, nonpoint pollution, effluent trading, tradable emissions permits

Suggested Citation

Woodward, Richard T., Market-Based Solutions to Environmental Problems: Discussion. Journal of Agricultural and Applied Economics, Vol. 32, No. 2, August 2000. Available at SSRN: https://ssrn.com/abstract=244751

Richard T. Woodward (Contact Author)

Texas A&M University - Department of Agricultural Economics ( email )

College Station, TX 77843-4218
United States
(409) 845-5864 (Phone)

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