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Tradeable Permits

Policy Evaluation, Design and Reform

Tradeable Permits by Organisation for Economic Co-operation and Development
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Tradeable Permits: Policy Evaluation, Design and Reform

The search for cost-effective environmental policy measures in OECD countries has led to an increase in the use of tradeable permit systems. After many years of experimenting in a limited number of countries, tradable permits in environmental policy can now offer effective solutions. In particular, in the context of the Kyoto Protocol on climate change where several countries are now implementing carbon trading schemes.  An EU-wide system will also come into force in 2005.

However, careful monitoring and assessment of such systems and, in particular their environmental effectiveness and economic efficiency, is crucial. 

This publication brings together the reports presented at the 2003 OECD workshop on Ex-Post Evaluation of Tradeable Permits and reviews the recent secondary literature on the evaluation of tradeable permits and policy evaluation. Areas covered include: How well tradable permit systems work and the design features that contribute to desirable outcomes. How tradeable permits have been applied in a variety of different contexts including air pollution controls, the degradation of wetlands, agricultural pollution, water scarcity and fisheries depletion. Information and insights into the technical issues associated with undertaking evaluations of tradeable permit schemes. Case studies covering Australia, the Netherlands, New Zealand and the United States.

In short, this publication offers valuable lessons for applying tradeable permits in environmental policy and provides links between policy evaluation and policy making general. It is essential reading for government officials responsible for the implementation and reform of tradable permit systems, researchers concerned with their analysis and evaluation, and other stakeholders interested in the more general issues associated with environmental policy design and evaluation.

Organisation for Economic Co-operation and Development; January 2004
193 pages; ISBN 9789264015036
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Title: Tradeable Permits
Author: Organisation for Economic Co-operation and Development
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