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The logic of collective action and Australia’s Climate Policy AgEcon
Pezzey, John C.V.; Mazouz, Salim; Jotzo, Frank.
The Australian Government's Carbon Pollution Reduction Scheme (CPRS), March 2009, set a target of 5 to 15 per cent emission cuts during 2000 and 2020. The proposed target is weak and is likely to increase mitigation costs in Australia in the long run. This research report analyses the target’s efficiency as well as provisions for preventing carbon leakage. The research also looks at the nature of changes to the CPRS made during 2008 as well as the likely cause of these changes. The free allocation of output-linked, tradable permits to Emissions-Intensive, Trade-Exposed (EITE) sectors was much higher than previously proposed and greater than what is needed to prevent carbon leakage. This means EITE emissions could rise by 13 per cent during 2010 and...
Tipo: Report Palavras-chave: Climate policy; Australia; Targets; Emission trading; Carbon leakage; Lobbying; Environmental Economics and Policy; Resource /Energy Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/94824
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The Paparazzi Take a Look at a Living Legend: The SO2 Cap-and-Trade Program for Power Plants in the United States AgEcon
Burtraw, Dallas; Palmer, Karen L..
For years economists have urged policymakers to use market-based approaches such as cap-and-trade programs or emission taxes to control pollution. The SO2 allowance market created by Title IV of the 1990 U.S. Clean Air Act Amendments (CAAA) presents the first real test of the wisdom of economists' advice. This paper provides an overview of the origins, design, and performance of the U.S. acid rain program, and an analysis of its specific features and its adaptability as a model for addressing other pollution problems, such as control of NOX or CO2 emissions. The program also has resulted in innovation through changes in organizational technology, in the organization of markets, and through experimentation at individual boilers, much of which arguably would...
Tipo: Working or Discussion Paper Palavras-chave: Emission trading; Cap and trade; Air pollution; Cost-benefit analysis; Electricity; Particulates; Sulfur dioxide; SO2; Health benefits; Acid rain; Environmental Economics and Policy; Q25; Q4; D62; Q28.
Ano: 2003 URL: http://purl.umn.edu/10665
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THE LOGIC OF COLLECTIVE ACTION AND AUSTRALIA'S CLIMATE POLICY AgEcon
Pezzey, John C.V.; Mazouz, Salim; Jotzo, Frank.
We thank two anonymous referees and the Department of Climate Change for helpful comments. This research was supported financially by the Environmental Economics Research Hub of the Australian Government's Commonwealth Environment Research Facilities program.
Tipo: Conference Paper or Presentation Palavras-chave: Climate policy; Australia; Targets; Emission trading; Carbon leakage; Lobbying; Environmental Economics and Policy.
Ano: 2010 URL: http://purl.umn.edu/59577
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Economics of Pollution Trading for SO2 and NOx AgEcon
Burtraw, Dallas; Evans, David A.; Krupnick, Alan J.; Palmer, Karen L.; Toth, Russell.
For years economists have urged policymakers to use market-based approaches such as cap-and-trade programs or emission taxes to control pollution. The SO2 allowance market created by Title IV of the 1990 U.S. Clean Air Act Amendments represents the first real test of the wisdom of economists' advice. Subsequent urban and regional applications of NOx emission allowance trading took shape in the 1990s in the United States, culminating in a second large experiment in emission trading in the eastern United States that began in 2003. This paper provides an overview of the economic rationale for emission trading and a description of the major U.S. programs for sulfur dioxide (SO2) and nitrogen oxides (NOx). We evaluate these programs along measures of...
Tipo: Working or Discussion Paper Palavras-chave: Sulfur dioxide; Nitrogen oxides; Emission trading; Power plants; Air pollution; Environmental Economics and Policy; H23; Q25; Q28; D78.
Ano: 2005 URL: http://purl.umn.edu/10488
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Opt-in of the agricultural sector to the European trading scheme for greenhouse gas emissions – a proposal and its possible effects AgEcon
Perez Dominguez, Ignacio; Holm-Muller, Karin.
In light of international discussions on a possible opt-in of the agricultural sector to the current European emission trading system for greenhouse gases, the objective of this article is to present a feasible implementation strategy for a market of emission permits in European agriculture and to simulate its economic effects within the regionalised agricultural sector model CAPRI. With this purpose, we compare the effects of a 15% reduction of greenhouse gas emissions from European agriculture with and without a trading scheme. Our findings suggest that if significant emission abatement is to be achieved in the agricultural sector, efficiency gains from expanding the current emission trading scheme to this sector can be appreciable. An additional finding...
Tipo: Journal Article Palavras-chave: Climate gas emissions; Emission trading; Abatement costs; Agricultural policy; Modelling; Agricultural and Food Policy.
Ano: 2007 URL: http://purl.umn.edu/96766
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Market-Based Approaches to Pollution Control in the Lake Taupo Catchment in New Zealand AgEcon
Paragahawewa, Upananda Herath.
There are at least five general reasons why market-based policies fail to address some of the most basic environmental objectives. This study evaluates the available biophysical and economic data against these criteria and concludes that market-based approaches should be employed cautiously in pollution control under the present system and the available technology for farming in the lake area. The most effective market-based instrument to control pollution, in this case, seems to be negative incentives, as the public net cost of farming is extremely higher than the private net benefits. However, the intensity of taxes that would be effective in this regard would definitely results negative net farm benefits. The principle alternative, emission trading,...
Tipo: Conference Paper or Presentation Palavras-chave: Pollution; Market-based policies; Emission trading; Environmental Economics and Policy.
Ano: 2006 URL: http://purl.umn.edu/31975
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Cost Savings Sans Allowance Trades? Evaluating the SO2 Emission Trading Program to Date AgEcon
Burtraw, Dallas.
Title IV of the 1990 amendments to the Clean Air Act initiated a historic experiment in incentive-based environmental regulation through the use of tradable allowances for emission of sulfur dioxide by electric generating facilities. To date, relatively little allowance trading has taken place; however, the costs of compliance have been much less than anticipated. The purpose of this paper is to address the apparent paradox that the allowance trading program may not require (very much) trading to be successful. Title IV represented two great steps forward in environmental regulation: first a move toward performance standards and second formal allowance trading. The first step has been sufficient to date for improving dynamic efficiency and achieving...
Tipo: Working or Discussion Paper Palavras-chave: Emission trading; SO2; Clean Air Act; Cost-effectiveness; Incentive-based regulation; Environmental Economics and Policy; Q25; Q28; Q48; L51.
Ano: 1996 URL: http://purl.umn.edu/10682
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The Ten-Year Rule: Allocation of Emission Allowances in the EU Emission Trading System AgEcon
Ahman, Markus; Burtraw, Dallas; Kruger, Joseph; Zetterberg, Lars.
In its guidance on National Allocation Plans (NAPs), the European Commission has discouraged Member States from adopting allocation methodologies that would provide incentives to firms affecting their compliance behavior. The purpose is to promote economic efficiency and to prevent strategic behavior that deviates from individual and collective cost-minimization. For example, some methodologies would reward one type of compliance investment over another. To discourage such actions, the EU Emission Trading System guidelines prohibit ex post redistribution of emission allowances within an allocation period based on behavior in that period. Similarly, the Commission has indicated that decisions about the initial distribution of allowances in the second phase...
Tipo: Working or Discussion Paper Palavras-chave: Emission trading; Allowance allocations; Closures; New entrants; Tradable permits; Air pollution; Cost-effectiveness; Greenhouse gases; Climate change; Global warming; Carbon dioxide; Environmental Economics and Policy; Q2; Q25; Q4; L94.
Ano: 2005 URL: http://purl.umn.edu/10637
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