All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Andrew Yates and Daniel English
 
''Citizens' demand for permits and Kwerel''s incentive compatible mechanism for pollution control''
( 2007, Vol. 17 No.4 )
 
 
An interesting feature of pollution permit markets is that citizens may purchase permits to directly lower the levels of pollution. Kwerel's mechanism (Review of Economic Studies~1977) is not incentive compatible when citizens demand permits. We show that a modification of Kwerel''s mechainism, the minimum-price mechanism, is incentive compatible when citizens demand permits, even in the case where there is uncertainty about the damages from pollution.
 
 
Keywords:
JEL: Q2 - Renewable Resources and Conservation: General
D0 - Microeconomics: General
 
Manuscript Received : Jan 24 2007 Manuscript Accepted : Feb 01 2007

  This abstract has been downloaded 522 times                The Full PDF of this paper has been downloaded 87712 times