Core Case Study: Chattanooga, Tennessee



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chapter17

Encouraging Innovations

  • Regulation
  • Laws – command and control
  • Incentive-based regulations
  • European experience positive for innovation-friendly regulations

Use of the Marketplace

  • Incentive-based model
  • Government caps on total pollution levels
    • Tradable pollution
    • Resource-use permits
  • Shown to reduce pollution
  • Fig. 17-7, p. 431
  • Fig. 17-7, p. 431
  • May not reduce pollution at
  • dirtiest plants
  • Can exclude small companies
  • from buying permits
  • Self-monitoring of emissions
  • can promote cheating
  • Flexible
  • Encourage pollution
  • prevention and waste
  • reduction
  • Disadvantages
  • Trade-Offs
  • Advantages
  • Tradable Environmental Permits

Selling Services Instead of Things

Individuals Matter: Ray Anderson

  • Inspired by Hawken’s The Ecology of Commerce
  • His Interface tile company
    • Reduced solid waste 75%
    • Reduced gas emission 82%
    • Lowered energy consumption 27%
    • Electricity from renewable sources 88%
    • Saved $393 million

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