Incentives for technological innovation in air pollution reduction: an ETIP (experimental technology incentives program) policy research series. Volume 2: Market mechanisms for emission regulation and enforcement of emission limits: deterrence and demand
This report focuses on the necessity of strong enforcement of air pollution emission limits for the creation of a marketplace demand for market mechanisms, such as offsets. Both trading and direct pricing types of market mechanisms for stationary source emission reduction will require strong, even enforcement of individual source emission limits. Enforcement will likewise influence the degree to which the private sector will organize and invest in the research and development work underlying technological innovation in air pollution control. Present enforcement inconsistencies, such as those among regional offices, and remedial actions are noted. If an EPA effort to strengthen detection of violations can be successfully implemented, its effect on a regulatee's perceived probability of getting caught could contribute to market participation. If the probability of detection and penalty is high, purchase of emission reductions on the market may be a more appealing alternative to regulatees than evasion or litigation.
- Research Organization:
- Performance Development Inst., Washington, DC (USA)
- OSTI ID:
- 6701603
- Report Number(s):
- PB-80-186083
- Country of Publication:
- United States
- Language:
- English
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