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transferable discharge permits

What are the advantages and disadvantages of transferable discharge permits? Was the approach taken with the 1990 Clean Air Act transferable discharge permit program appropriate? Why or why not? What alternative approach do you recommend?

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Some background Information
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In a transferable emission permit system a new type of property right is created. This property right consists of a permit to emit pollutants. Each permit (also known as an allowance) entitles its holder to emit one unit (kilogram, tonne, or however the permit is calibrated) of the waste material specified in the right (Popp, 2012). Rights holders would ordinarily have a number of such permits at any point in time. If a discharger owned 100 permits, for example, it would be entitled to emit, during some specified period of time, a maximum of 100 units of the designated type of pollutant.

What are the advantages and disadvantages of transferable discharge permits?
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There are some disadvantages that comes with discharge permits. These discharge permits are transferable; they can be bought and sold among anybody allowed to participate in the permit market, at whatever price is agreed upon by the participants ...

Solution Summary

Transferable discharge permits are examined. The discharge permit program appropriate is determined.

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