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4 Policies in practice.(Clean Air Act)
Foundations and Trends in Microeconomics, October, 2005 by Gayer, Ted; Horowitz, John K.
In 1989, Robert Hahn published the influential article, "Economic Prescriptions for Environmental Problems: How the Patient Followed the Doctor's Orders," which examined early experiences, in the U.S. and elsewhere, with both cap-and-trade and environmental taxes. (1) In the years since, market-based policies have flourished. They have gone from a half-dozen limited applications in air and water pollution to hundreds, enacted or proposed, targeted at nearly every form of environmental problem. The most noteworthy U.S. market-based policy, the Acid Rain Trading Program, was only in the blueprint stage at the time of Hahn's article, and this influential policy now serves as the model for yet grander legislative cap-and-trade proposals such as the Clear Skies Act and the...
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