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Sulfur Trading Under the 1990 CAAA in the US: An Assessment of First Experiences

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  • Ger Klaassen
  • Andries Nentjes

Abstract

In the US the first stage of a federal system of tradeable sulfur allowances started on January 1, 1995. This article assesses the first experiences with the program. The design of the program is set out and contrasted with the earlier EPA (Environmental Protection Agency) emission trading program. The market performance of the allowance market in the period 1992 to 1996 is evaluated, and expected developments in the next decade are described. Bottlenecks in market performace, cost-effectiveness and environmental effectiveness are discussed. We conlude that the market for sulfur allowances has performed quite well.

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Bibliographic Info

Article provided by Mohr Siebeck, Tübingen in its journal Journal of Institutional and Theoretical Economics.

Volume (Year): 153 (1997)
Issue (Month): 2 (June)
Pages: 384-

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Handle: RePEc:mhr:jinste:urn:sici:0932-4569(199706)153:2_384:stut1c_2.0.tx_2-7

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Cited by:
  1. Mundaca, Luis & Mansoz, Mathilde & Neij, Lena & Timilsina, Govinda R, 2013. "Transaction costs of low-carbon technologies and policies : the diverging literature," Policy Research Working Paper Series 6565, The World Bank.
  2. Woerdman, Edwin, 2000. "Organizing emissions trading: the barrier of domestic permit allocation," Energy Policy, Elsevier, vol. 28(9), pages 613-623, July.
  3. Michaelowa, Axel & Jotzo, Frank, 2005. "Transaction costs, institutional rigidities and the size of the clean development mechanism," Energy Policy, Elsevier, vol. 33(4), pages 511-523, March.
  4. Pan, Haoran & Regemorter, Denise Van, 2004. "The costs and benefits of early action before Kyoto compliance," Energy Policy, Elsevier, vol. 32(13), pages 1477-1486, September.
  5. Woerdman, Edwin, 2000. "Implementing the Kyoto protocol: why JI and CDM show more promise than international emissions trading," Energy Policy, Elsevier, vol. 28(1), pages 29-38, January.
  6. Schwarze, Reimund & Zapfel, Peter, 1998. "Sulfur allowance trading and the regional clean air incentives market: How similar are the programs really?," MPRA Paper 52751, University Library of Munich, Germany, revised 02 Nov 1999.
  7. Woerdman, Edwin, 2001. "Emissions trading and transaction costs: analyzing the flaws in the discussion," Ecological Economics, Elsevier, vol. 38(2), pages 293-304, August.
  8. Boom, Jan-Tjeerd, 2001. "International emissions trading under the Kyoto Protocol: : credit trading," Energy Policy, Elsevier, vol. 29(8), pages 605-613, June.

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