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Regulatory conflict in the Chicago VOC control program

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Author Info

  • Richard Kosobud
  • Joshua Linn
  • Houston Stokes
  • Carol Tallarico

Abstract

The study analyzes the performance of an innovative cap-and-trade program designed to make cost-effective reductions of an ozone precursor in Chicago and finds that decentralized market incentives were undermined by the continuance of centralized traditional emission point or command-and-control regulation. The study makes two contributions for urban areas considering this regulatory measure: it shows that using two regulatory measures to achieve one emissions reduction goal can undercut cost-effective emissions trading, and it provides a redesign of the market system that coordinates both regulatory measures for cost-effective control and avoidance of trading problems, such as hot spots and inter-temporal spikes.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/09640560802117093
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Environmental Planning and Management.

Volume (Year): 51 (2008)
Issue (Month): 4 ()
Pages: 561-579

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Handle: RePEc:taf:jenpmg:v:51:y:2008:i:4:p:561-579

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Web page: http://www.tandfonline.com/CJEP20

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Related research

Keywords: ozone; cap-and-trade; command-and-control; regulatory coordination; cost-effectiveness; VOC redesign;

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