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Book Description: First published in 1985, Emissions Trading was a comprehensive review of the first large scale attempt to use economic incentives in environmental policy in the United States; since its publication it has consistently been one of the most widely cited works in the tradable permits literature. The second edition of this classic study of pollution reform considers how the use of transferable permits to control pollution has evolved over the last twenty five years.Initially little more than an academic curiosity, the use of tradable permits eventually became the centerpiece of both the U.S. program to control acid rain and the European approach to controlling greenhouse gases. The second edition of Emissions Trading skillfully weaves together a vast amount of theoretical and empirical information, offering a thorough survey of what we have learned about this important environmental policy instrument after twenty five years of theorizing, conducting empirical research, and evaluating the implementation experience.Intended to appeal both to academics and practitioners, Emissions Trading outlines what has been learned to date about the appropriate niche for this instrument and identifies best practices for the design of effective programs.

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