IMPLEMENTATION ISSUES FOR MARKETABLE PERMITS - A CASE-STUDY OF NEWSPRINT

The Congress is considering a marketable permit approach to increase the demand for old newspapers. Although this approach, rather than a uniform standard, results in potential efficiency gains, these gains will be realized only if the policy is enforceable, and an active and competitive permit market develops. This paper highlights the unique features of the marketable permit system under consideration and examines the question of whether the conditions necessary for the full efficiency gains to be realized are likely to be met.