New Tools for Improving Government Regulation: An Assessment of Emissions Trading and Other Market-Based Regulatory Tools

This report examines the use of market-based regulatory tools by the U.S. Environmental Protection Agency and other federal and state regulatory agencies. These regulatory tools, including emissions trading programs and marketable permits and emission taxes, have been widely heralded as central to the next generation of regulatory laws and programs. They promise to dramatically reduce the cost of achieving environmental goals, giving regulated industries more flexibility, and integrating regulatory requirements into overall business goals. GreenMarket-Based Government