¥Advantages:
–based on fixed known limits of
rights
–generate tax revenues
–inflation & economic growth would
automatically raise prices
¥Disadvantages:
–requires extensive ÒobjectiveÓ scientific
input to determine the Òfixed upper
limitsÓ of
rights
–maximum pollution right, may be severely
compromised
by political processes
–requires extensive monitoring and
enforcement to ensure
¥non-purchasers do not pollute, degrade,
and waste resources
¥purchasers do not exceed their purchased
ÒrightsÓ