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Workshop: Market Mechanisms and Incentives: Applications to Environmental Policy (2003-part 1)

Paper Number: EE-0472

Document Date: 05/01/2003

Author(s):  Alpha-Gamma Technologies, Inc.

Subject Area(s):

Economic Analysis, Benefit-Cost Analysis, Economic Incentives, Market Mechanisms

Keywords: Economic Analysis, Benefit-Cost Analysis, Economic Incentives, Market Mechanisms


The purpose of the Environmental Policy and Economics Workshop Series is to hold in-depth workshops on timely topics that will further the use of economics as a tool for environmental decision making. Both NSF/EPA grant recipients and researchers (from EPA, fellow Federal agencies, academia, and others) will be invited to attend and discuss their on-going research. Topics will be chosen based on relevance to current EPA issues and, more broadly, to issues of concern to the environmental economics community. These topics include exploration of innovations in economic research methods as well as how research will further environmental policy making and future environmental economic studies.

Proceedings from a two-day workshop co-sponsored by EPA's National Center for Environmental Economics and National Center for Environmental Research which presented research results, summarized EPA programs and discussed pending legislation related to market mechanisms and incentives. The workshop also featured a keynote address by Christine Whitman, Administrator of EPA, a luncheon address by Nobel Laureate Vernon L. Smith, and a panel discussion by Paul Gilman, Assistant Administrator for EPA's Office of Research and Development; Tracy Mehan, Assistant Administrator for EPA's Office of Water; and Jeffery Holmstead, Assistant Administrator for EPA's Office of Air.


Introductory Remarks by Al McGartland, Director, US EPA, National Center for Environmental Economics, Office of Policy, Economics, and Innovation

Session I: Water Trading

  • Introductory Remarks - Water Quality Trading: Reinvigorating EPA Policy and Support. Presented by Lynda Wynn
  • Collective Enforcement Agreements for Point-Nonpoint Water Quality Trades. Presented by Alan Randall
  • Water-Quality Trading System for the Lower Boise River. Presented by Claire Schary
  • Stormwater Trading Study. Presented by Haynes Goddard and Hale Thurston. - Summarization
  • Experimentation with Watershed-based Trading Using the Internet. Presented by Mark Landry
  • Discussion: Water Trading: Bringing Non-Point Sources into the Fold. Presented by Charles Griffiths
  • Discussion: Water Quality Trading. Presented by Greg Poe
  • Question and Answer Period for Session I

Remarks of Governor Christine Todd Whitman, Administrator of the U.S. Environmental Protection Agency

Session II: Market Mechanisms in Environmental Policy: A Panel Discussion

  • Water Quality Trading. Presented by Tracy Mehan, Assistant Administrator, US EPA, Office of Water -Summarization
  • Emissions Trading. Presented by Jeffrey Holmstead, Assistant Administrator, US EPA, Office of Air
  • Question and Answer Period for Session II

Session III: Carbon Trades and Taxes

  • Environmental Taxes: Using First-Best Models in a Second-Best World. Presented by Richard Howarth
  • Policy Implications of Environmental Taxation with Pre-Existing Revenue Taxes. Presented by William Jaeger
  • Discussant Comments. Presented by Roberton Williams
  • Question and Answer Period for Session III

Session IV: SOx / NOx Trades

  • Efficiency and Distributional Consequences of the Allocation of Emission Allowances. Presented by Dallas Burtraw
  • Multi-Lateral Emissions Trading. Presented by Alex Farrell
  • SO2 Trades: Phase II Compliance. Presented by Denny Ellerman
  • Question and Answer Period for Session IV

Session V: Experimental Methods

  • A Laboratory Comparison of Uniform and Discriminative Price Auctions for Reducing Nonpoint Source Pollution. Presented by Tim Cason
  • Compliance Behavior and Enforcement of Emissions Trading Programs Using Experimental Analysis. Presented by Jim Murphy and John Stranlund
  • Question and Answer Period for Session V

Session VI: Legislative Issues with Market Mechanisms

  • Comparison of Multi-Pollutant Trading Proposal. Presented by William Pizer Summarization
  • More Multi-Pollutant Trading Proposal Comparisons. Presented by David Doniger. Summarization
  • Question and Answer Period for Session VI

This workshop is part of the Environmental Policy and Economics Workshop Series.

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