Cost-Effective Control of Urban Smog: The Significance of the Chicago Cap-and-Trade Approach (Routledge Explorations in Environmental Economics)

Containing rigorous hard evidence, this book is of immense practical use to postgraduates, researchers and business communities affected by or working in environmental regulation. The author, a leading name in the environmental economics community, examines the problem of urban smog in cityscapes and the difficulty of achieving cost-effective controls. Analyzing the key areas of urban smog, low-level ozone and volatile organic compound emissions and their impact on health and welfare of communities this text assesses and evaluates the performance of emissions trading systems and suggests alternative market designs for incentive control of pollution. Taking a well-reasoned approach to the contentious area of the use of market incentives to achieve environmental goals, it provides a study of the pioneering cap-and-trade market, particularly focusing on its poor performance in Chicago. A perfect supplementary text postgraduates and researchers, this is also an essential read for all those interested in environmental economics. Book Cover......Page 1 Half-Title......Page 2 Series Title......Page 3 Title......Page 4 Copyright......Page 5 Contents......Page 6 Figures......Page 10 Tables......Page 12 Foreword......Page 14 Preface......Page 18 Acknowledgments......Page 22 Abbreviations......Page 24 1 Introduction......Page 26 2 The political economy of the Chicago market design......Page 40 3 Expectations and actual performance......Page 55 4 Traditional regulations and market incentives......Page 73 5 Simulated performance of alternative market model features......Page 86 6 Explaining unanticipated market performance......Page 108 7 Hot spots, spikes, and emissions trading......Page 127 8 Alternative market designs: The experimental approach......Page 150 9 Conclusions and policy recommendations for market redesign......Page 163 Appendix A: Measurement of daily ozone, precursor concentrations, and selected meterological variables......Page 183 Appendix B: Explanation of generalized least squares and generalized additive models estimation techniques......Page 185 Glossary......Page 189 Bibliography......Page 192 Index......Page 198 Many large urban areas have health and visibility problems due to ozone precursor emissions and low-level ozone concentrations, but have yet to find flexible and cost-effective regulatory measures to deal with these issues. This book analyzes the performance of a pioneering cap-and-trade market recently established to reduce emissions in a more flexible and cost-effective manner than prescriptive or traditional regulation. The results should be of special interest to urban areas confronted by complex pollution problems requiring new regulatory and implementation approaches Introduction -- The Political Economy Of The Chicago Market Design -- Expectations And Actual Performance -- Traditional Regulations And Market Incentives -- Simulated Performance Of Alternative Market Model Features -- Explaining Unanticipated Market Performance -- Hot Spots, Spikes, And Emissions Trading -- Alternative Market Designs : The Experimental Approach -- Conclusions And Policy Recommendations For Market Redesign. Richard F. Kosobud ... [et Al.]. Includes Bibliographical References (p. [167]-171) And Index.