Emissions trading comes of age as a strategic tool
Trading of emissions credits has quickly evolved from a curiosity to a viable compliance strategy for electric utilities and power-generating industrial firms. A sure sign that emissions trading has matured is the entry of power marketers onto the scene; in bundling pollution allowances with their electricity offerings, they are making their product more attractive - and stealing a page from the coal companies` strategy book to boot. Although most current activity involves credits for sulfur dioxide (SO{sub 2}), nitrogen oxide (NO{sub x}) trading is under way in certain areas as well, although NO{sub x} markets are local and thus slower to develop. However, utilities see economic development potential in this area; some are providing NO{sub x} credits to their industrial customers to help them comply with environmental regulations - and to retain their loyalty when deregulation affords them a choice of electricity suppliers. This paper briefly discusses the issues related to emissions trading.
- OSTI ID:
- 232493
- Journal Information:
- Electrical World, Vol. 210, Issue 3; Other Information: PBD: Mar 1996
- Country of Publication:
- United States
- Language:
- English
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