ABSTRACT
Transferable emissions control is a relatively new market-based pollution-control policy instrument. The ingenuity behind this policy instrument is the creation of ‘artificial’ markets for pollution rights that are traded as commodities. The growing appeal of TECs arise from their applicability, not only in regulating pollution, but also in the management of common property resources under free access such as ocean fisheries and tropical forests. A TEC is a regulatory tool with tremendous potential for the management of wide-ranging environmental resources provided they are used appropriately.To do so, one need to have a good understanding of both the strengths and limitations of this rather novel policy tool, and it is with this in mind that the materials in this chapter presented.
