Urban Studies and Planning Commons^™

Market-Base Solutions To Manage The Guarani Aquifer: Pigouvian Fee And Cap-And-Trade, Julia Hayes Vieira

Master's Theses and Capstones

The objective of this case-study is to analyze the effects and the perception of different groups in possibly implementing market-based approaches of Pigouvian tax and Cap-and-Trade to manage the Guarani Aquifer, Brazil. The Pigouvian Tax is a corrective taxation that assigns a price for the negative impacts water consumption creates to aquifers, as a way to influence a more sustainable level of water consumption. Cap-and-Trade sets a maximum quantity of water allowed to be used from aquifers, and allow economic agents to trade quantities of water they have the right to use, as a way to adapt to the cap. …