Emissions Trading Environmental Policy's New Approach

by Kosobud, Richard F.; Schreder, Douglas L.; Biggs, Holly M.

• ISBN13: 9780471355045
• ISBN10: 0471355046
• Edition: 1st
• Format: Hardcover
• Copyright: 2000-01-28
• Publisher: Wiley

Summary

Authoritative, comprehensive, accessible-the definitive guide to a new approach in environmental policy Emissions Trading: Environmental Policy's New Approach presents the work of an outstanding group of contributors on the successes and limitations of this new and exciting incentive-based tool for reducing environmental pollutants. By including the comments of emitters, regulators, public interest group representatives, and academics, the book reveals the criticisms, disagreements, and growing resolution of numerous environmental questions, including: * Can markets be used to correct market environmental failure? * Will decentralized decisions by emitters produce an improvement in air quality? * Can this approach realize significant control cost savings? * Can emissions trading be monitored and enforced effectively at a reduced cost? * Will affected groups support this dramatic innovation? Supported with sound analytical thinking and careful consideration of the evidence, Emissions Trading presents an open and candid discussion of the issues and choices that lie ahead. As emissions trading is extended to air pollutants such as nitrogen oxides and carbon dioxide, the data and information contained in this book will become even more important and compelling for anyone interested in matters destined to have a profound impact on the economy, the environment, and public health.

Author Biography

RICHARD F. KOSOBUD, PhD, is Professor of Economics at the University of Illinois at Chicago. A former associate dean of the University’s Business School and head of the Economics Department, Professor Kosobud has been Director for the University’s Workshop on Market-Based Approaches to Environmental Policy since 1992. The workshop presents the work of the country’s leading experts and is attended by senior executives, business leaders, policy makers, and top researchers.

Table of Contents

Foreword	ix
Preface	xiii
PART ONE Incentive-Based Environmental Quality Control	1	(46)
Emissions Trading Emerges from the Shadows	3	(44)
Richard F. Kosobud
PART TWO Appraising Environmental Policy'S New Approach	47	(42)
What Do We Really Know about Market-Based Approaches to Environmental Policy?
Lessons from Twenty-Five Years of Experience	49	(12)
Robert N. Stavins
From Porcopolis to Carbopolis
The Evolution from Pork Bellies to Emissions Trading	61	(13)
William D. Nordhaus
Some Observations on the Evolution of the International Greenhouse Gas Emissions Trading Market	74	(15)
Richard L. Sandor
Michael J. Walsh
PART THREE Views from the Market Designers and Administrators	89	(128)
Emissions Trading Designs in the OTAG Process	91	(42)
Mary A. Gade
Roger A. Kanerva
A Tale of Two Revolutions
Administration of the SO2 Trading Program	115	(16)
Joseph A. Kruger
Brian J. McLean
Rayenne Chen
PART FOUR An Application at Center Stage
The Pioneering National Cap-and-Trade Market to Reduce Acid Rain	131	(2)
Appraisal of the SO2 Cap-and-Trade Market	133	(84)
Dallas Burtraw
Panel Commentary and Discussion of the Burtraw Study
Development and Maturing of Environmental Control Technologies in the Power Industry	168	(18)
William DePriest
More Clean Air for the Buck: Lessons from the U.S. Acid Rain Emissions Trading Program	186	(4)
Sarah Wade
From Autarkic to Market-Based Compliance
Learning from Our Mistakes	190	(14)
A. Denny Ellerman
Panel Commentary and Discussion of the Ellerman Study
Southern Company's BUBA Strategy in the SO2 Allowance Market	204	(5)
Gary R. Hart
Electric Industry Restructuring and the SO2 Emissions Trading Program: A Look Ahead by Looking Back	209	(8)
Kenneth J. Rose Jr.
PART FIVE An Application at Center Stage the Pioneering Regional Cap-and-Trade Market to Reduce Urban Smog	217	(44)
The RECLAIM Program (Los Angeles' Market-Based Emissions Reduction Program) at Three Years	219	(42)
James M. Lents
Panel Commentary and Discussion of the Lents Study
Assessing Market Performance and Firm Trading Behavior in the NOx RECLAIM Program	241	(12)
Thomas H. Klier
Environmental Justice: Time Boundaries and the Nature of Pollution Markets	253	(6)
Kevin F. Snape
PART SIX An Application at Center Stage
Voluntary Discrete Emission Reductions	259	(2)
Discrete Emission Reductions Trading
Practical Application in the Connecticut Regulatory Environment	261	(1)
Joseph A. Belanger
Panel Commentary and Discussion of the Belanger Study	261	(40)
Costs of NOx Emissions Control Technologies	283	(6)
Vincent M. Albanese
Emissions Trading in Michigan	289	(6)
Louis L. Jager
VOC Emissions Trading from an Industrial Perspective: Past, Present, and Future	295	(6)
Thomas W. Zosel
PART SEVEN A Perspective on Emissions Trading	301	(6)
The Significance of Incentive-Based Regulation	303	(4)
Michael Moskow
Acronyms	307	(4)
Contributors	311	(10)
Index	321