Jul 22 2006
Market Works for Clean Air
Read WP article: Science Panel Says Proposed Cap-and-Trade System Will Help Clean Air
“The Bush administration’s new program to cut harmful pollutants from utilities through a cap-and-trade system will do nearly as much to clean the nation’s air as the Clinton administration’s effort to make aging power plants install pollution controls when they modernize or expand, a report by an independent scientific panel has concluded.”
–Of course, this does not contradict with the notion that market activities produce externality. Government is still needed to safeguard environment. However, the article seems to indicate that using market machanism is just as effective (if not more efficient) as administrative enforcement.