Decentralized transferable permit systems in the transport sector can be of interest with
regard to reducing greenhouse gas emissions, in spite of anticipated transaction costs. This
paper describes a potential application of a domestic market for car fuel consumption
permits. The marginal costs of consumption reduction vary sufficiently according to motorists'
residential locations to consider permit exchanges. Economic evaluation of this system
shows that there are transfers of surplus between the various groups of motorists according …

Decentralized transferable permit systems in the transport sector can be of interest with
regard to reducing greenhouse gas emissions, in spite of anticipated transaction costs. This
paper describes a concrete application of a domestic market for motor vehicle fuel
consumption permits. The marginal costs of consumption reduction vary sufficiently
according to motorists' residential locations to consider permit exchanges. Economic
evaluation of this system reveals that there are transfers of surplus between the various …