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The Economic Analysis of Pollution Rights
09国贸3班 冯敏婷 200930910303
If we want to know more about the pollution rights trading, we should learn the pollution rights first. Pollution Rights is a measure based on environmental conservation, which is based on market. Compared with the traditional administration control device, it not only makes a contribution to economy development, but also reaches the goal to protect the environment and resource.
Capitol hill puts forward initial pollution rights’ three modes of distribution, distribute for free, vendue and offer for sale. Practicing proves that pollution rights trade makes a big difference in America. After that, a lot of countries, like Germany and Australia had lead pollution rights trading into their system. And our country had starded to make the experiments of emission trading system in several cities, such as Kaiyuan City, Baotou City, Taiyuan City.
Pigou put forwarded the Pigouvian Tax, which is also called the concept of
Emission charging in 1920. He pointed out that the problem of externality by collecting taxes or charging to those who polluted. Coase put forwarded Co-ase theorem in 1960, he considered that adopting initial definition of property rights can solve the problem of externality. Dales put forwarded the concept of pollution rights, and makes the Coase theorem applied to the control of water pollution.
Montgomery pointed out that it is essentiality to study about the theory of pollution trading by mathematical economics , and proved that the emission trading system based on market is obviously better than the traditional environmental management policy theoretical in 1972. At the same time, the research indicated that pollution trading market makes contribution to weight the standard of environment’s quality. Under certain conditions, pollution rights’ finial allocation will be cost efficiency, if we don’t consider the addignment problem of initial pollution rights.
Krupnick and Oates put forw
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