Public Management Occasional Papers Putting Markets to Work The Design and Use of Marketable Permits and Obligations No. 19

One of the alternatives to traditional command-and-control regulation is the use of marketable permits and obligations. Based on the growing record of actual performance of these instruments, this paper provides practical insights into difficult design, implementation, and management issues. It presents a checklist to aid practitioners in assessing when these instruments are preferable to traditional regulatory practices. Executive Summary 1. Introduction -Aim and Approach 2. The Policy Challenge -Climate Change and Sustainable Development International Developments Costs of Responding to Climate Change 3. Trends: Emissions and Policies -Emission Trends: OECD 1990-1996 OECD and Global Trends: CO2 and Energy Policy Trends 4. Framework for Mitigation Policy Getting the Prices Right Putting Markets to Work: Domestic Tradable Permits for Greenhouse Gas Reduction Other Policies in the Mix Monitoring and Assessing Performance Institutions for Change Fostering International Cooperation 5. Conclusions -Framework for Mitigation Policy Moving Forward References