Expanding the Use of Environmental Trading Programs into New Areas of Environmental Regulation

This article identifies the fundamental policy issues that must be dealt with in designing market-based pollution control systems. Market- based pollution control systems are now well established in America air and water pollution control programs. So far, however, the benefits of such systems have been limited by the unease of regulators and others about quality assurance, environmental justice, and other design issues. In order to realize the full potential benefits of market-based programs these issues must be addressed as part of the program design.