Economic theory and empirical models suggest that economic instruments should help us to meet environmental goals at lower cost. Practical experience, however, shows that the cost savings of emission trading are smaller than expected and charges usually have had small incentive impacts. This book gives a comprehensive review of economic theory, simulation models, and practical experience with the use of economic instruments. The book focuses on air pollution control. Part I examines theoretical aspects and simulation modelling in a national context. Part II surveys the practical experience in a variety of countries. Part III explores international issues, such as joint implementation. Because of its blend of theoretical and empirical research, the book should prove interesting for both economists and those interested in environmental policy.

Economic theory and empirical models suggest that economic instruments should help us to meet environmental goals at lower cost. Practical experience, however, shows that the cost savings of emission trading are smaller than expected and charges usually have had small incentive impacts. This book gives the first comprehensive review of economic theory, simulation models, and practical experience with the use of economic instruments. The book focuses on air pollution control. Part I examines theoretical aspects and simulation modeling in a national context. Part II surveys the practical experience in a variety of countries. Part III explores international issues, such as joint implementation. Because of its unique blend of theoretical and empirical research, the book will prove interesting for both economists and those interested in environmental policy.

Acid Rain and Environmental Degradation is a succinct yet comprehensive survey of emission trading - a significant research and policy field of increasing importance for both Europe and the USA.Against the background of environmental policy instruments in general, Dr Klaassen presents a state-of-the-art survey of both the theory and actual applications of tradable permits. This survey also analyses international theory and experience. Later chapters examine the European acid rain issue and discuss how it can be addressed by means of tradable permits with particular relevance to sulphur emissions. Acid Rain and Environmental Degradation responds to current European policy discussions to apply emission trading on a continental scale. Because of its unique blend of theory and practice, this volume not only sets the tone for future discussions in Europe on transboundary pollution control, but also offers something for the academic economist, the environmentalist and the policymaker.