Modeling Transactions Costs in a Regional Transferable Discharge Permit System for Phosphorus Runoff

This paper examines the construction and implementation of a regional transferable discharge permit system for phosphorus runoff from agricultural-related sources. The impact on behavior at the firm level is also examined. Results indicate that firms may respond to binding environmental constraints by both engaging in the trade of discharge permits and decreasing the output that can cause phosphorus runoff. The criticisms within the literature of building transferable discharge permit systems that ignore transactions costs are also addressed.


Issue Date:
2012
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/143774
PURL Identifier:
http://purl.umn.edu/143774
Published in:
Journal of Regional Analysis and Policy, Volume 42, Issue 2
Total Pages:
13




 Record created 2017-04-01, last modified 2018-01-22

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)