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Cap-and-Trade: The Evolution of an Economic Idea

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  • Tietenberg, Tom
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    Abstract

    Over the past three decades or so, emissions trading has evolved from an idea that was little more than an academic curiosity to its current role as the centerpiece of the U.S. program to control acid rain and international programs to control greenhouse gases. This essay identifies some of the key milestones of this evolution, describes how that evolution was shaped by economic analysis, elicits some of the lessons about the design and effectiveness of emissions trading that have emerged from analysis of that evolution, and points out a few of the barriers that lie in the path of achieving a truly global carbon market.

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    File URL: http://purl.umn.edu/95836
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    Bibliographic Info

    Article provided by Northeastern Agricultural and Resource Economics Association in its journal Agricultural and Resource Economics Review.

    Volume (Year): 39 (2010)
    Issue (Month): 3 (October)
    Pages:

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    Handle: RePEc:ags:arerjl:95836

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    Web page: http://www.narea.org/
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    Related research

    Keywords: emissions trading; cap-and-trade; climate policy; Environmental Economics and Policy; Political Economy; Public Economics;

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    1. Meriem Hamdi-Cherif & Céline Guivarch & Philippe Quirion, 2010. "Sectoral Targets for Developing Countries: Combining "Common but Differentiated Responsibilities" with "Meaningful participation"," Working Papers 2010.37, Fondazione Eni Enrico Mattei.
    2. Burtraw, Dallas & Palmer, Karen & Cropper, Maureen & Carlson, Curtis, 1998. "Sulfur-Dioxide Control By Electric Utilities: What Are the Gains from Trade?," Discussion Papers dp-98-44-rev, Resources For the Future.
    3. O'Ryan, Raul E., 1996. "Cost-Effective Policies to Improve Urban Air Quality in Santiago, Chile," Journal of Environmental Economics and Management, Elsevier, vol. 31(3), pages 302-313, November.
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