This invisible foot idea is quite interesting
because it has some link with the fear of many of
those who are skeptical about tradable permits:
They say: "We are in fact granting extra rights to polluters"
The standard response: "Not at all! We are simply
restricting their freedom by imposing
restrictions on emissions. But we do so with the
help of a market mechanism"
The invisible foot idea as a reply to this
standard response: "in a dynamic perspective,
tradable permits generate an incentive to
generate new negative externalities"
Does this make sense?
What are the references to the Hunt and the D'arge & M?daille papers?
Dr. Axel Gosseries Ramalho