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Water quality trading policy

By Anonymous
Publication: Regulation
Date: Tuesday, October 1 2002
HEADNOTE

MERCATUS REPORTS

HEADNOTE

STATUS: EPA instituting program

In May, the Environmental Protection Agency requested comment

on its proposed Policy on Water Quality Trading. The policy looks to use permit trading and other market mechanisms to achieve environmental results that traditionally have been pursued through government command-and-control regulation. The proposal observes that "market-based approaches such as water quality trading provide greater flexibility and have potential to achieve water quality and environmental benefits greater than can be achieved under current practices and policies." The economic incentive programs are actually developed by states, localities, and public or private watershed associations. Thus, EPA's proposal signals its willingness to cooperate in the development of such programs for improving water quality.

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