Premium
TEACHING TOOLS: A POLLUTION RIGHTS TRADING GAME
Author(s) -
NUGENT RACHEL A.
Publication year - 1997
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1997.tb02042.x
Subject(s) - incentive , pollution , economics , environmental economics , emissions trading , control (management) , class (philosophy) , microeconomics , natural resource economics , business , computer science , greenhouse gas , management , ecology , artificial intelligence , biology
This article describes a classroom game in which students simulate the US. EPAS market for emission allowances to understand the efficiency benefits of market‐based incentives for pollution control. It can be used in either a principles or environmental economics course. Acting as managers of coal‐fired power plants facing different clean‐up costs, students compare the cost of pollution reduction to the cost of acquiring permits to emit pollution. The game can be conducted in one 50‐minute class period with discussion of the results carried over to the next class. (JEL A2)