Skip to main content
Regulation of Externalities
Journal of Public Economics (1976)
  • Ted C Bergstrom, University of California, Santa Barbara

This paper presents a general equilibrium model with marketable pollution permits. It shows that competitive equilibrium with marketable permits is "conditionally optimal" in the sense that no Pareto improvement can be achieved without changing pollution standards. The paper also explores mechanisms for choosing efficient aggregate pollution levels.

Publication Date
January 1, 1976
Citation Information
Ted C Bergstrom. "Regulation of Externalities" Journal of Public Economics Vol. 5 (1976)
Available at: