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OXFORD REVIEW OF ECONOMIC POLICY, VOL. 19, NO. 3, PP. 400-419
© 2003 Oxford University Press and the Oxford Review of Economic Policy Limited

The Tradable-Permits Approach to Protecting the Commons: Lessons for Climate Change

Tom Tietenberg
Colby College1

Abstract

Tradable-permit approaches for rationing access to the commons have been applied to many different types of resources in many different countries. This essay reviews the experience with three main applications of tradable-permit systems—air-pollution control, water supply, and fisheries management—as well as some unique related programmes. The purpose of the review is to draw together what we have learned about tradable permits in practice that might offer some useful insights for the implementation of the three tradable-permit mechanisms that are part of the Kyoto Protocol.


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