Tradable Discharge Permits: A Student-Friendly Game
20 Pages Posted: 29 Sep 2003
Date Written: August 1, 2003
An in-class game can be used to improve students' understanding of how a TDP program might work. There are, however, tradeoffs one must face in designing such a game. An exercise might, in theory, demonstrate all the nuances of a TDP program and yet be so complex that students learn little from the experience. We develop a game that is easy enough to play that even students with limited economics and math backgrounds can participate fully. Instructors can use this game to provide a diverse body of students with insights on the relative cost-effectiveness of a permit system over a uniform standard, the nature of permit market equilibrium, and the information requirements associated with varied regulatory regimes.
JEL Classification: A22, C9
Suggested Citation: Suggested Citation