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Title: Allowance trading: Correcting the past and looking to the future

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.
Authors:
;  [1]
  1. Univ. of Oklahoma, Norman, OK (United States). Environmental and Ground Water Institute
Publication Date:
OSTI Identifier:
118661
Resource Type:
Journal Article
Resource Relation:
Journal Name: Environmental Professional; Journal Volume: 17; Journal Issue: 3; Other Information: PBD: Sep 1995
Country of Publication:
United States
Language:
English
Subject:
54 ENVIRONMENTAL SCIENCES; 29 ENERGY PLANNING AND POLICY; 20 FOSSIL-FUELED POWER PLANTS; CLEAN AIR ACTS; IMPLEMENTATION; SULFUR DIOXIDE; AIR POLLUTION CONTROL; ACID RAIN; DEPOSITION; ELECTRIC UTILITIES; ENVIRONMENTAL EFFECTS; PERMITS