Glossary (Body of Knowledge on Infrastructure Regulation)

Tradable permit regulation:: See tradable permits. In establishing a tradable permit regime, an environmental agency must determine the allowed level of emissions and whether additional constraints might be applied to local areas with particular circumstances. In addition, the sector regulator has to make decisions regarding the treatment of savings from the regime-whether they should be passed on to consumers or retained by firms-to provide an incentive for participating in the emissions trade markets.

Interactive Glossary