Emission allowances stall in marketplace

Journal Article · · Forum for Applied Research and Public Policy; (United States)

OSTI ID:6409492

Malec, W F ^[1]

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1. Tennessee Valley Authority, Knoxville (United States)

Misinformation and public misunderstanding have given emissions trading a bad reputation in the public marketplace, says William F. Malec, executive vice president of the Tennessee Valley Authority (TVA), in Knoxville, Tennessee. Media coverage of a May 1992 emissions-allowance trade between TVA and Wisconsin Power and Light [open quotes]focused on the agreement's pollution-trading aspects, not its overall potential economic and environmental benefits,[close quotes] Malec says. Such negative portrayal of TVA's transaction sparked severe public criticism and charges that emissions trading gives utilities the right to pollute. [open quotes]The fact is that TVA sought the emissions-trading agreement as a means to reduce overall emissions in the most cost-effective way,[close quotes] Malec explains. Emissions trading allows a company with emission levels lower than clean-air standards to earn [open quotes]credits.[close quotes] These credits then may be purchased by a company with emission levels that exceed federal standards. Under this arrangement, the environment is protected and companies that buy credits save money because they do not have to purchase expensive emissions-control devices or reduce their production levels. Malec says TVA decided to enter into the emissions-allowance market, not only to cut costs, but also to publicize the existence and benefits of emissions trading. However, TVA's experience proves that [open quotes]people will not accept what they do not understand,[close quotes] concludes Malec, [open quotes]especially when complex environmental issues are involved.[close quotes]

• OSTI ID: 6409492
• Journal Information: Forum for Applied Research and Public Policy; (United States), Journal Name: Forum for Applied Research and Public Policy; (United States) Vol. 8:2; ISSN FARPEL; ISSN 0887-8218
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290201* -- Energy Planning & Policy-- Economics-- (1992-)
290300 -- Energy Planning & Policy-- Environment
Health
& Safety
AIR POLLUTION
AIR POLLUTION ABATEMENT
CONTROL
ENVIRONMENTAL POLICY
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
NATIONAL ORGANIZATIONS
POLLUTION
POLLUTION ABATEMENT
POWER
POWER PLANTS
PUBLIC OPINION
TENNESSEE VALLEY AUTHORITY
TRADE
US ORGANIZATIONS