Pollution budgeting: A concept whose time has come

Summary The paper provides a discussion of the pollution budgeting concept and the use of emissions trading as an implementation strategy. The paper is divided into three sections. Section 1 discusses the use of emissions trading to implement the pollution budget concept. Section 2 provides a discussion of the policy problems that have arisen in the implementation of emissions trading as a transitional system. Section 3 provides concluding comments. Any opinions, findings, and conclusions or recommendations expressed in this paper are those of the author and do not necessarily reflect the views of the President's Council on Environmental Quality. Dr Gordon L. Brady Jr. holds a Ph.D. degree in Economics and a Masters in the Study of Law. His present appointment is Senior Economic Policy Advisor at the President's Council on Environmental Quality. Prior to this appointment he was Special Consultant on Regulatory Reform at the National Science Foundation.