A crucial factor in the success of any water quality trading market is its ability to cost-effectivelyreallocate nutrient allowances from initial holders to those users who find them most valuable;the market's trading efficiency. We explore causes of and solutions to trading inefficiency...

The theory of environmental regulation suggests that economic instruments, such as taxes and tradable permits, create more effective technology adoption incentives than conventional regulatory standards. We explore this issue for an important industry undergoing technological responses to a...