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over alternative schemes without banking. Unlike the experience with airpollutant emissions trading in the early 1980s, the phasedown of leadevolved into a fairly efficient market, resulting in an extraordinary reductionin lead emissions (Chart 7-5). Although this certainly reflects the less intrusivegovernment role in the lead market (individual trades did not requiregovernment approval), the efficiency of the market may also reflect the technicalcapacity within firms to participate in trading. Firms that already haveexperience in trading, such as refineries that engage in intermediate productmarkets within the refinery industry, may be more inclined to trade.However, smaller firms may have been less inclined to trade because theylacked the technical capacity to evaluate their own costs of removing leadfrom gasoline and to assess their potential role in the lead market.Charges: Unit-Based Pricing of ResidentialSolid WasteEveryday activities generate solid waste. Through direct and indirect consumption,an average individual generates approximately 4 pounds of wasteper day. The generation of waste requires the appropriate disposal at landfillsand incinerators. Its disposal can result in numerous problems, includingwater pollution (from landfills), air pollution (from incinerators), and transportation-relatedproblems associated with hauling waste, including noise,odor, and traffic congestion.Chapter 7 | 261