Allowance trading: Correcting the past and looking to the future
- Univ. of Oklahoma, Norman, OK (United States). Environmental and Ground Water Institute
Allowance trading is basic to the Title IV acid rain provisions of the 1990 Clean Air Act Amendments (CAAA) in the United States; the provisions seek to achieve a 10-million-ton reduction in annual sulfur dioxide emissions from the electric power utility industry. Allowance trading, a market-based approach, is conceptually similar to the emissions trading policy of the US Environmental Protection Agency (EPA). An allowance is defined as the authorization to emit, during or after a specified calendar year, one ton of sulfur dioxide. This paper provides an overview of the allowance trading program by summarizing some important features, particularly as they are responsive to limitations and concern as related to the precursor emissions trading program in the early to mid-1980s. Such features include a simple definition of baseline emission levels, encouragements for nationwide trading, disincentives for accumulation of excess allowance,s opportunities for leasing other short-term allowance transfer arrangements, enforcement provisions, and benefits of bonus allowances and early emission reductions. Adherence to implementation protocols for the acid rain provisions of Title IV of the CAAA will provide a good opportunity to evaluate this market-based approach for environmental quality management.
- OSTI ID:
- 118661
- Journal Information:
- Environmental Professional, Journal Name: Environmental Professional Journal Issue: 3 Vol. 17; ISSN 0191-5398; ISSN EPROD9
- Country of Publication:
- United States
- Language:
- English
Similar Records
Emissions trading programs, making sense of the options
Ten utilities receive acid rain bonus allowances from EPA