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Product Abstract

Interactions of Cost-Containment Measures and Linking of Greenhouse Gas Emissions Cap-and-Trade Programs

Product ID:1013315
Date Published:05-Dec-2006
Sector Name:Environment
Document Type:Technical Results
Price:No Charge

This Product is publicly available

   528.40 KB - Adobe PDF (.pdf)

Many recent greenhouse gas (GHG) emissions cap-and-trade proposals in the United States–including proposals in the Northeast, California, and at the national level–include specific measures designed to contain the potential compliance costs of the proposed programs. These cost-containment measures include "new" provisions not included in existing emissions trading programs–notably a "safety valve" that would cap the allowance price–as well as provisions such as banking or the use of offsets that have been included in prior programs. At the same time, this proliferation of potential GHG emissions trading programs in the U.S. and elsewhere (as well as the major existing program, the European Union Emissions Trading Scheme) raises the issue of whether (and how) to link various GHG emissions trading programs to one another. The potential gains from linking are clear–a combined program offers the possibility of additional cost savings. At the same time, linking raises issues of compatibility among the linked programs.
2006 Program 103   Analysis of Environmental Policy Design, Implementation and Company Strategy
  • Global Climate Change
  • Carbon trading
  • GHG emissions trading
  • CO2 Safety Valve
  • Linking
  • European Union Emissions Trading Scheme (EU ETS)

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