Tradable Standards for Clean Air Act Carbon Policy
AbstractEPA is in the process of regulating U.S. greenhouse gas (GHG) emissions using its powers under the Clean Air Act. The likely next phase of this regulatory program is performance standards under Section 111 of the act for coal plants and petroleum refineries, which the agency has committed to finalize by the end of 2012. Section 111 appears to allow use of flexible, market-based regulatory tools. In this paper, we discuss one such tool, tradable standards. Tradable standards appear to be a legally and politically viable choice for the agency, and evidence suggests they are substantially more cost-effective than traditional performance standards. The paper discusses implementation issues with tradable standards, including categorization, banking, and phased implementation, as well as broader issues with the Section 111 rulemaking process as it relates to state-level GHG regulatory efforts.
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Bibliographic InfoPaper provided by Resources For the Future in its series Discussion Papers with number dp-12-05.
Date of creation: 07 Feb 2012
Date of revision:
averaging; flexibility; regulatory design; market-based regulation;
Find related papers by JEL classification:
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-20 (All new papers)
- NEP-ENE-2012-02-20 (Energy Economics)
- NEP-ENV-2012-02-20 (Environmental Economics)
- NEP-REG-2012-02-20 (Regulation)
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- repec:rff:dpaper:dp-11-43-rev is not listed on IDEAS
- William M. Shobe & Dallas Burtraw, 2012.
"Rethinking Environmental Federalism In A Warming World,"
Climate Change Economics (CCE),
World Scientific Publishing Co. Pte. Ltd., vol. 3(04), pages 1250018-1-1.
- William Shobe & Dallas Burtraw, 2012. "Rethinking Environmental Federalism in a Warming World," Working Papers 2012-01, Center for Economic and Policy Studies.
- Shobe, William M. & Burtraw, Dallas, 2012. "Rethinking Environmental Federalism in a Warming World," Discussion Papers dp-12-04, Resources For the Future.
- Linn, Joshua & Mastrangelo, Erin & Burtraw, Dallas, 2013. "Regulating Greenhouse Gases from Coal Power Plants under the Clean Air Act," Discussion Papers dp-13-05, Resources For the Future.
- Burtraw, Dallas & Woerman, Matt, 2013. "Technology Flexibility and Stringency for Greenhouse Gas Regulations," Discussion Papers dp-13-24, Resources For the Future.
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