Are Cap-and-Trade Programs More Environmentally Effective than Conventional Regulation?

Moving to Markets in Environmental Regulation: Lessons from Twenty Years of Experience

Volumn , Issue , 2006, Pages

  Denny, Ellerman A ^a,b  

^a MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^b MIT Center for Energy and Environmental Policy Research   (United States)

Author keywords

Clean air act; Emissions trading; Environmental policy; Ex post evaluations; Market instruments; NOx budget; RECLAIM program; SO2 trading

Indexed keywords

EID: 84882255906     PISSN: None     EISSN: None     Source Type: Book    
DOI: 10.1093/acprof:oso/9780195189650.003.0003     Document Type: Chapter

References (35)

1. Buchanan, James M., and Gordon Tullock (1975). "Polluters' Profits and Political Response: Direct Controls versus Taxes," American Economic Review 65(1): 139-47.
2. Burtraw, Dallas, and Erin Mansur (1999). "The Environmental Effects of SO2 Trading and Banking," Environmental Science and Technology 33(20): 3489-94.
3. Carlson, Curtis P., Dallas Burtraw, Maureen Cropper, and Karen Palmer (2000). "SO2 Control by Electric Utilities: What Are the Gains from Trade?" Journal of Political Economy 108(6): 1292-326.
4. Chay, Kenneth Y., and Michael Greenstone (2004). Air Quality, Infant Mortality and the Clean Air Act of 1970. MIT-CEEPR Working Paper available online at web.mit.edu/ceepr/www/2004-006.pdf.
5. Clear the Air: National Campaign against Dirty Power (2002). "Darkening Skies: Trends toward Increasing Power Plant Emissions," Washington, DC. Available online at cta.policy.net/fact/darkening_skies.
6. Crocker, Thomas D. (1966). "The Structuring of Atmospheric Pollution Control Systems," in The Economics of Air Pollution, ed. Harold Wolozin. New York:Norton.
7. Dales, J. H. (1968). Pollution, Property and Prices: An Essay in Policy-Making and Economics. Toronto: University of Toronto Press.
8. Dubroeucq, Florence (2004). Effectiveness of the Clean Air Act on SO2 Emissions from U.S. Electric Utilities: A Detailed Analysis of the Influence of Attainment Status and Unit-Level Characteristics on the Reduction of SO2 Emissions from 1976 to 2002. Master's thesis in Technology and Science, MIT, Cambridge, MA.
9. Ellerman, A. Denny (2004). "The U.S. SO2 Cap-and-Trade Program," in Tradeable Permits: Policy Evaluation, Design and Reform. Paris: OECD, pp. 71-97. Also available as MIT/CEEPR Working Paper online at web.mit.edu/ceepr/www/2003-003.pdf.
10. Ellerman, A. Denny, and Juan-Pablo Montero (2002). The Temporal Efficiency of SO2 Emissions Trading. MIT-CEEPR Working Paper 02-003 (September).
11. Ellerman, A. Denny, Paul L. Joskow, and David Harrison (2003). Emissions Trading: Experience, Lessons, and Considerations for Greenhouse Gases. Washington, D.C.: Pew Center for Global Climate Change.
12. Ellerman, A. Denny, Paul L. Joskow, Richard Schmalensee, Juan-Pablo Montero, and Elizabeth Bailey (2000). Markets for Clean Air: The U.S. Acid Rain Program. Cambridge: Cambridge University Press.
13. Farrell, Alex (2000). "The NOx Budget: A Look at the First Year." Electricity Journal March: 83-92.
14. Fuller, Dan A. (1987). "Compliance, Avoidance, and Evasion: Emissions Control under Imperfect Enforcement in Steam-Electric Generation," RAND Journal of Economics 18(1): 124-37.
15. Gollop, Frank M., and Mark J. Roberts (1983). "Environmental Regulations and Productivity Growth: The Case of Fossil-Fueled Electric Power Generation" Journal of Political Economy 91(4): 654-74.
16. Greenstone, Michael (2004). Did the Clean Air Act Cause the Remarkable Decline in Sulfur Dioxide Concentrations? MIT-CEEPR Working Paper 2004-007, available online at web.mit.edu/ceepr/www/2004-007.pdf.
17. Harrison, David Jr. (2004). "Ex Post Evaluation of the RECLAIM Emissions Trading Programmes for the Los Angeles Air Basin," in Tradeable Permits:Policy Evaluation, Design and Reform. Paris: OECD, pp. 45-69.
18. Joskow, Paul L. (2001). "California's Electricity Crisis," Oxford Review of Economic Policy 17(3): 365-88.
19. Kruger, Joseph A., Brian J. McLean, and Rayenne Chen (2000). "A Tale of Two Revolutions: Administration of the SO2 Trading Program," in Emissions Trading: Environmental Policy's New Approach, ed. Richard Kosobud. New York: Wiley.
20. Laffont, Jean-Jacques, and Jean Tirole (1993). A Theory of Incentives in Procurement and Regulation. Cambridge, MA: MIT Press.
21. MacAvoy, Paul W. (1979). The Regulated Industries and the Economy. New York: Norton.
22. MacAvoy, Paul W. (1987). "The Record of the Environmental Protection Agency in Controlling Industrial Air Pollution," in Energy: Markets and Regulation, Essays in Honor of M. A. Adelman, eds. Richard L. Gordon, Henry D. Jacoby, and Martin B. Zimmerman, Cambridge, MA: MIT Press, pp. 107-36.
23. Montgomery, W. David (1972). "Markets in Licenses and Efficient Pollution Control Programs," Journal of Economic Theory 5:395-418.
24. Moore, Curtis A. (2002). Marketing Failure: The Experience with Air Pollution Trading in the United States. Unpublished study.
25. Nelson, Randy A., Tom Tietenberg, and Michael R. Donihue (1993). "Differential Environmental Regulation: Effects on Electric Utility Capital Turnover and Emissions," Review of Economics and Statistics 75(2): 368-73.
26. Ringquist, Evan J. (1993). "Does Regulation matter? Evaluating the Effects of State Air Pollution Control Programs," Journal of Politics 55(4): 1022-45.
27. Rosenzweig, Richard, and Matthew Varilek (2003). Key Issues to Be Considered in the Development of Rate-Based Emissions Trading Programs:Lessons Learned from Past Programs. Final discussion draft for EPRI Workshop in Vancouver, BC, Canada, April 29.
28. Shabman, Leonard, Kurt Stephenson, and William Shobe (2002). "Trading Programs for Environmental Management: Reflections on the Air and Water Experiences," Environmental Practice 4(3): 153-62.
29. South Coast Air Quality Management District (SCAQMD) (2003). Annual RECLAIM Audit Report for the 2001 Compliance Year. Available online at www.aqmd.gov/hb/030336a.html.
30. South Coast Air Quality Management District (SCAQMD) (2004). Draft White Paper: Key Issues Relative to Proposed Amendments to Regulation XX-Regional Clean Air Incentives Market (RECLAIM). Available online at www.aqmd.gov/RECLAIM/docs/White%20Paper%20August %202004%20DRAFT.pdf.
31. Swift, Byron (2000). "Allowance Trading and SO2 Hot Spots: Good News from the Acid Rain Program," Environment Reporter 31(19)L 954-59.
32. Tietenberg, Tom H. (1985). Emissions Trading: An Exercise in Reforming Pollution Policy. Washington, DC: Resources for the Future.
33. Unger, Samantha (2004). RECLAIM Poised for Major Changes. Evolution Markets LLC Executive Brief no. 25, available online at www.evomarkets.com/assets/evobriefs/nw_1093900761.pdf.
34. U.S. Environmental Protection Agency (EPA) (2000). 1999 Compliance Report: Acid Rain Program. EPA-430-R000-007. Available online at www.epa.gov/airmarkets/cmprpt/arp99/arpcomprpt99.pdf.
35. U.S. Environmental Protection Agency and the Ozone Transport Commission (EPA-OTC) (2003). NOx Budget Program: 1999-2002 Progress Report. Available online at www.epa.gov/airmarkets/otc.