L11 Econ 451 Chapter Notes - Chapter 8: Class Action, Environmental Law, William Baumol
Document Summary
Command and control is the most used tool since the 1970s for federal environmental statutes, best available technology, ackerman and stewart: argue that the emphasis on c&c regulation is misplace because, 1. Firms that meet the command and control standard have no incentives to reduce their pollution further: 2. Thus a ban or tax on improper disposal are unlikely to be effective tools. The agency must estimate how much pollution presently is permitted by law if bat functioned properly would be easy, but it doesn"t so it won"t could be approximated: 2. Run a system of auctions to give polluting rights for limited terms complicated, but other agencies have don similar things in similar fashions: 3. Run an efficient title registry in each region that will allow buyers and sellers to transfer rights in a legally effective way: 4. Consistently penalize polluters who discharge more than their permitted amount reinforced by reasons above.
