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Emissions trading markets have been successful in addressing pollution problems where regulated entities can be treated in a similar manner and precise control of emissions quantities across time and space is not critical. In other situations, trading must account for individual circumstances, complexity, and the patchwork of existing regulations. In these circumstances trading systems have elements of contracts, in that transactions are unique and must be negotiated and approved individually. Such programs imply a high payoff to improved environmental information and to innovations in trading systems that allow making better use of such information. (JEL Q21, Q25, Q28)

ABSTRACT
The welfare effects of public versus private waste disposal with and without flow controls are analyzed. The pricing of private waste disposal services is modeled as being bounded above by the public entity's average disposal cost, but constrained by potential entry of private competitors. It is found that once a publicly owned disposal facility has been built, waste generators are almost always better off if their local government has flow control authority. This results from the necessity of covering the fixed costs of the public facility once it has been built, in conjunction with the expected pricing behavior of private firms.

ABSTRACTThis paper explores the use of empirical evidence to determine whether the exposure of minorities to environmental risks constitutes aversive racism. Connections are drawn between definitions of aversive racism and statistical approaches to research into the relationship between race and risk, paying particular attention to the influence of both non‐racial discrimination and industrial location factors. Federal judicial and executive remedies to aversive racism are examined in light of the standards of evidence presented. An empirical study of the connection between race and exposure to toxic releases is then presented for Census block groups in Georgia and Ohio. It was found that the significance of race depends on the breadth of the explanatory model used in the analysis. A model of overall exposure to toxic releases shows that race is significant in a narrow model of discrimination but not in a broader model including industrial location factors. However, a model of targeting of minorities in the recent location of toxics‐emitting facilities fails to show discrimination in any of the regression analyses. These findings support the view that environmental justice concerns cannot be addressed through reform of siting processes; broader remedies involving more stringent protection of exposure to toxic emissions are more likely to be effective.