IDEAS home Printed from https://ideas.repec.org/p/cdl/itsdav/qt2ct0n1xv.html
   My bibliography  Save this paper

Rethinking Downstream Regulation: California's Opportunity to Engage Households in Reducing Greenhouse Gases

Author

Listed:
  • Niemeier, Debbie A.
  • Gould, Gregory
  • Karner, Alex
  • Hixson, Mark
  • Bachmann, Brooke
  • Okma, Carrie
  • Lang, Ziv
  • Heres Del Valle, David

Abstract

With the passage of the Global Warming Solutions Act of 2006 (AB32), California has begun an ambitious journey to reduce in-state GHG emissions to 1990 levels by 2020. Under the direction of executive order S-20-06, a mandated Market Advisory Committee (MAC) charged with studying market-based mechanisms to reduce GHG emissions, including cap and trade systems, has recommended taking an “upstream†approach to GHG emissions regulation, arguing that upstream regulation will reduce administrative costs because there are fewer agents. In this paper, we argue that, the total costs to society of a GHG cap and trade scheme can be minimized though downstream regulation, rather than the widely proposed upstream approach. We propose a household carbon trading system with four major components: a state allocation to households, household-to-household trading, households to utility company credit transfers, and utility companies to government credit transfers. The proposed system can also be considered more equitable than carbon taxes and upstream cap and trade systems to control GHG emissions from residential energy use and is consistent with AB32.

Suggested Citation

  • Niemeier, Debbie A. & Gould, Gregory & Karner, Alex & Hixson, Mark & Bachmann, Brooke & Okma, Carrie & Lang, Ziv & Heres Del Valle, David, 2008. "Rethinking Downstream Regulation: California's Opportunity to Engage Households in Reducing Greenhouse Gases," Institute of Transportation Studies, Working Paper Series qt2ct0n1xv, Institute of Transportation Studies, UC Davis.
  • Handle: RePEc:cdl:itsdav:qt2ct0n1xv
    as

    Download full text from publisher

    File URL: http://www.escholarship.org/uc/item/2ct0n1xv.pdf;origin=repeccitec
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Tina Fawcett, 2004. "Carbon Rationing and Personal Energy Use," Energy & Environment, , vol. 15(6), pages 1067-1083, November.
    2. Stavins, Robert N., 2003. "Experience with market-based environmental policy instruments," Handbook of Environmental Economics,in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 9, pages 355-435 Elsevier.
    3. Curtis Carlson & Dallas Burtraw & Maureen Cropper & Karen L. Palmer, 2000. "Sulfur Dioxide Control by Electric Utilities: What Are the Gains from Trade?," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1292-1326, December.
    4. Paul Leiby & Jonathan Rubin, 2001. "Intertemporal Permit Trading for the Control of Greenhouse Gas Emissions," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 19(3), pages 229-256, July.
    5. Montgomery, W. David, 1972. "Markets in licenses and efficient pollution control programs," Journal of Economic Theory, Elsevier, vol. 5(3), pages 395-418, December.
    6. Tom Tietenberg, 2003. "The Tradable-Permits Approach to Protecting the Commons: Lessons for Climate Change," Oxford Review of Economic Policy, Oxford University Press, vol. 19(3), pages 400-419.
    7. Azqueta, Diego & Delacamara, Gonzalo, 2006. "Ethics, economics and environmental management," Ecological Economics, Elsevier, vol. 56(4), pages 524-533, April.
    8. M. Fleurbaey & F. Maniquet, 1997. "Implementability and Horizontal Equity Imply No-Envy," Econometrica, Econometric Society, vol. 65(5), pages 1215-1220, September.
    9. Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2005. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521023894.
      • Ellerman,A. Denny & Joskow,Paul L. & Schmalensee,Richard & Montero,Juan-Pablo & Bailey,Elizabeth M., 2000. "Markets for Clean Air," Cambridge Books, Cambridge University Press, number 9780521660839.
    10. McCalley, L. T. & Midden, Cees J. H., 2002. "Energy conservation through product-integrated feedback: The roles of goal-setting and social orientation," Journal of Economic Psychology, Elsevier, vol. 23(5), pages 589-603, October.
    11. Burtraw, Dallas & Palmer, Karen & Bharvirkar, Ranjit & Paul, Anthony, 2002. "The Effect on Asset Values of the Allocation of Carbon Dioxide Emission Allowances," The Electricity Journal, Elsevier, vol. 15(5), pages 51-62, June.
    12. Goodin, Robert E, 1994. "Selling Environmental Indulgences," Kyklos, Wiley Blackwell, vol. 47(4), pages 573-596.
    13. A. Greening, Lorna & Greene, David L. & Difiglio, Carmen, 2000. "Energy efficiency and consumption -- the rebound effect -- a survey," Energy Policy, Elsevier, vol. 28(6-7), pages 389-401, June.
    14. Jacoby, Henry D. & Ellerman, A. Denny, 2004. "The safety valve and climate policy," Energy Policy, Elsevier, vol. 32(4), pages 481-491, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hobbs, Benjamin F. & Bushnell, James & Wolak, Frank A., 2010. "Upstream vs. downstream CO2 trading: A comparison for the electricity context," Energy Policy, Elsevier, vol. 38(7), pages 3632-3643, July.
    2. Bristow, Abigail L. & Wardman, Mark & Zanni, Alberto M. & Chintakayala, Phani K., 2010. "Public acceptability of personal carbon trading and carbon tax," Ecological Economics, Elsevier, vol. 69(9), pages 1824-1837, July.
    3. Wojciech Kopczuk & Justin Marion & Erich Muehlegger & Joel Slemrod, 2016. "Does Tax-Collection Invariance Hold? Evasion and the Pass-Through of State Diesel Taxes," American Economic Journal: Economic Policy, American Economic Association, vol. 8(2), pages 251-286, May.
    4. Schwanen, Tim & Banister, David & Anable, Jillian, 2011. "Scientific research about climate change mitigation in transport: A critical review," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 993-1006.
    5. Fawcett, Tina, 2010. "Personal carbon trading: A policy ahead of its time?," Energy Policy, Elsevier, vol. 38(11), pages 6868-6876, November.
    6. repec:kap:ejlwec:v:44:y:2017:i:3:d:10.1007_s10657-015-9516-x is not listed on IDEAS
    7. repec:eee:trapol:v:58:y:2017:i:c:p:19-30 is not listed on IDEAS
    8. Hickman, Robin & Saxena, Sharad & Banister, David & Ashiru, Olu, 2012. "Examining transport futures with scenario analysis and MCA," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(3), pages 560-575.
    9. Wadud, Zia, 2011. "Personal tradable carbon permits for road transport: Why, why not and who wins?," Transportation Research Part A: Policy and Practice, Elsevier, vol. 45(10), pages 1052-1065.
    10. McNamara, David & Caulfield, Brian, 2011. "Measuring the potential implications of introducing a cap and share scheme in Ireland to reduce green house gas emissions," Transport Policy, Elsevier, vol. 18(4), pages 579-586, August.
    11. Starkey, Richard, 2012. "Personal carbon trading: A critical survey," Ecological Economics, Elsevier, vol. 73(C), pages 7-18.

    More about this item

    Keywords

    UCD-ITS-RP-08-34;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cdl:itsdav:qt2ct0n1xv. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lisa Schiff). General contact details of provider: http://edirc.repec.org/data/itucdus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.