Tradable discharge permits: A student-friendly game

Amy W. Ando, Donna Ramirez Harrington

Research output: Contribution to journalArticlepeer-review


An in-class game can be used to improve students' understanding of how a tradable discharge permit (TDP) program might work. There are, however, trade-offs one must face in designing such a game. An exercise might, in theory, demonstrate all the nuances of a TDP program and yet be so complex that students learn little from the experience. The authors develop a game that is easy enough to play that even students with limited backgrounds in economics and math can participate fully. Instructors can use this game to provide a diverse body of students with insights on the relative cost-effectiveness of a permit system over a uniform standard, the nature of permit market equilibrium, and the comparative advantages of different regulatory regimes.

Original languageEnglish (US)
Pages (from-to)187-201
Number of pages15
JournalJournal of Economic Education
Issue number2
StatePublished - Mar 2006


  • Instructional game
  • Tradable discharge permit

ASJC Scopus subject areas

  • Education
  • Economics and Econometrics


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