RATIONING EMISSION POLLUTION CONTROL: FAIRNESS, ADVANTAGES AND IMPLEMENTABILITY

Various methods have been proposed and applied to solve air pollution problem (e.g., Crendall (1986), Enviromental Protection Administration (1988, 1989), Friedlaender (1978), National Commission on Air Quality (1981), OECD (1980), Portney (1984), White (1986)). In terms of efficiencies in control costs and resource allocation and thus maximization of total social welfare, emission fees and marketable (tradable) emission (discharge) petmits are the two preferred methods among economists. Study and comparison of these two methods also became the interests of many researchers (e.g., Baumol (1988), Bohm (1985), Hahn (1987)). It seems that the consensus is that, among other advantages over emission fees, marketable emission permits 'promise to reduce the unceratinty and adjustment costs involved in attaining legally required levels of environmental quality' (Baumol, 1988, p.178).