US Experience with Emissions Trading

Emissionshandel, Vereinigte Staaten, Emissions trading, United States

Allocation in Air Emissions Markets

Massachusetts Institute of Technology. Center for Energy and Environmental Policy Research

The Temporal Efficiency of SO2 Emissions Trading

The Temporal Efficiency of SO2 Emissions Tradin

Lessons from Phase 2 compliance with the U.S. Acid Rain Program

This paper provides preliminary answers to four questions concerning the behavior of agents operating under the SO2 Allowance Trading Program that could not be adequately answered until several years' data on compliance behavior in the final Phase II could be observed. The four questions are: 1. How is abatement distributed geographically when all fossil-fuel-fired electricity generating units are included? 2. Will agents draw down the accumulated Phase I bank, as expected and more or less efficiently, during Phase II? 3. Is there any evidence that the failure to endow new generating units with allowances constitutes a barrier to entry? 4. What can be said about the cost of the SO2 Allowance Trading Program in Phase II when all units are included and when it is fully phased in

Lessons form Phase 2 Compliance with the US Acid Rain Program

Lessons form Phase 2 Compliance with the US Acid Rain Progra

New entrant and closure provisions : how do they distort?

As a person whose life began in England and ended in North America and who maintained academic affiliations in the United Kingdom, Canada and the U.S., Campbell Watkins had a fine appreciation for the subtle differences that mark the two sides of the North Atlantic. He embodied the cross-fertilization that trans-Atlantic exchanges imply and I have no doubt that that was one of the reasons the IAEE received so much of his attention and benefited so grandly from it. This essay concerns one of those trans-Atlantic exchanges and one of which Campbell would have enjoyed the irony: An American innovation that goes to Europe and becomes bigger than anything yet seen in North America. The transplant is the cap-and-trade form of emissions trading and the European application is the European Union CO2 Emissions Trading Scheme (EU ETS). More specifically, this paper focuses on a particular feature of the allocation process in the European variant, the endowment of new entrants with allowances and the forfeiture of allowances when facilities are closed

Analysis of the Bush proposal to reduce the SO₃ cap

This paper evaluates President Bush's recent proposal to reduce the cap on total SO2 emissions using a model of emissions banking that fits the experience so far under Title IV. It provides a brief introduction to emissions banking and reports results concerning the effect of a the proposed reduction of the cap on emissions, abatement costs, and the value of the existing SO2 allowance endowment.Supported by the MIT Center for Energy and Environmental Policy Research

The world price of coal

A significant increase in the seaborne trade for coal over the past twenty years has unified formerly separate coal markets into a world market in which prices move in tandem. Due to its large domestic market, the United States has become the residual supplier and price setter in the world coal market. Changes in multifactor productivity have been the primary cause of the long-term fluctuations in coal prices that have been observed in the United States since the end of the Second World War and in the world coal market.Supported by the MIT Center for Energy and Environmental Policy Research

Over-Allocation or Abatement? A Preliminary Analysis of the Eu Ets Based on the 2005 Emissions Data

This paper provides an initial analysis of the EU ETS based on the installation-level data for verified emissions and allowance allocations in the first trading year. Those data, released on May 15, 2006, and subsequent updates revealed that CO2 emissions were about 4% lower than the allocated allowances. The main objective of the paper is to shed light on the extent to which over-allocation and abatement have taken place in 2005. We propose a measure by which over-allocation can be judged and provide estimates of abatement based on emissions data and indicators of economic activity as well as trends in energy and carbon intensity. Finally, we discuss the insights and implications that emerge from this tentative assessment.Climate Change, Emission Trading, Allocation, Environmental Effects