Potential Applications of Economic Instruments for Environmental Protection in the Lake Champlain Basin, , LCBP Technical Report #4C

Artuso, A. (1993). Potential Applications of Economic Instruments for Environmental Protection in the Lake Champlain Basin (Technical Report No. 4C). Grand Isle, VT: Lake Champlain Basin Program

This report summarizes and interprets a review of the literature on innovative approaches to environmental regulation. Its analysis focuses on the applicability of market mechanisms and economic incentives for protection of environmental quality in the Lake Champlain Basin. Section 1 summarizes the objectives of environmental regulation and the theoretical strengths and weaknesses of alternative regulatory mechanisms. Section 2 presents ten case studies using discharge fees and transferable discharge permits for environmental protection and pollution control. Section 3 integrates theoretical and empirical insights from the literature review with lessons drawn from the case studies. Section 4 discusses potential uses of economic instruments for environmental protection in the Lake Champlain Basin, recommends a process for further policy analysis, and outlines critical areas for further research. Appendix A contains complete references and brief abstracts of seventy of the most relevant publications obtained in the literature review. Appendix B contains more detailed documentation of several of the case studies.