Policy makers and analysts are often faced with situations where it is unclear whether market-based instruments hold real promise of reducing costs, relative to conventional uniform standards. We develop analytic expressions that can be employed with modest amounts of information to estimate the...

Policy makers and analysts are often faced with situations where it is unclear whether market-based instruments hold real promise of reducing costs, relative to conventional uniform standards. We develop analytic expressions that can be employed with modest amounts of information to estimate the...

This paper reviews lessons from the two decades of experience in the United States with market-based instruments for environmental protection. Normative lessons are considered for design and implementation, for analysis of prospective and adopted systems, and for identification of new...