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Incentive Arrangements for Environmental Protection - A Critical Examination

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This study examines the merits and demerits of using economic incentives (pricing) schemes for environmental problems. Three detailed case studies were undertaken to examine attitudes toward pricing schemes, and interviews were conducted in Washington D.C. Part I by Thomas Schelling discusses the use of price as regulatory instruments. Part II by David Harrison, Jr. presents the use of charges, marketable rights, and other mechanisms for the regulation of aircraft noise. Part III by Albert Nichols discusses alternative strategies for regulating airborne benzene. Part IV by Robert Repetto explains the prevention of deterioration in air quality system and the use of economic systems in allocating emissions rights. Part V by Steven J. Kelman discusses economic incentives and environmental policy.


Harrison Jr., David, Nichols, Albert L., Kelman, Steven J., Schelling, Thomas C., and Repetto, Robert

Resource Type:

Research paper/report



Use Type:

Basic theory
Special topics
EPA programs
Case studies


Cost-benefit analysis
Market-Based Approaches



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