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Linking existing and proposed GHG emissions trading schemes in North America

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  • ERIK HAITES
  • MICHAEL MEHLING

Abstract

A number of greenhouse gas emissions trading schemes have been implemented or proposed for Canada, the USA and Mexico. Links between those schemes make sense, given the close economic ties between the countries. All of the existing and proposed schemes, except Alberta's, include provisions for unilateral use of credits and/or allowances from other schemes with quantity and qualitative restrictions. A federal scheme in the USA is likely to pre-empt state schemes, with the possible exception of a few states with more stringent schemes, especially if states are given a role in the federal scheme. In Canada, provinces that want-and are able-to establish that their schemes are equivalent to the federal scheme could continue to operate. Canada will have to modify its proposed scheme to achieve its expressed desire of linking with regulatory-based emissions trading schemes in the USA and Mexico.

Suggested Citation

  • Erik Haites & Michael Mehling, 2009. "Linking existing and proposed GHG emissions trading schemes in North America," Climate Policy, Taylor & Francis Journals, vol. 9(4), pages 373-388, July.
    • Handle: RePEc:taf:tcpoxx:v:9:y:2009:i:4:p:373-388
    DOI: 10.3763/cpol.2009.0622
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    Citations

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    Cited by:

    1. Richard S.J. Tol, 2013. "Long live the Kyoto Protocol!," Chapters, in: Roger Fouquet (ed.), Handbook on Energy and Climate Change, chapter 14, pages 344-351, Edward Elgar Publishing.
    2. Peter Zaman & Adam Hedley, 2016. "Networked Carbon Markets," World Bank Publications - Reports 26430, The World Bank Group.
    3. Pizer, William A. & Yates, Andrew J., 2015. "Terminating links between emission trading programs," Journal of Environmental Economics and Management, Elsevier, vol. 71(C), pages 142-159.
    4. Winkler, Malte Björn Johannes & Peterson, Sonja & Thube, Sneha, 2021. "Gains associated with linking the EU and Chinese ETS under different assumptions on restrictions, allowance endowments, and international trade," Energy Economics, Elsevier, vol. 104(C).
    5. Tracy Snoddon, 2016. "Carbon Copies: The Prospects for an Economy-wide Carbon Price in Canada," e-briefs 247, C.D. Howe Institute.
    6. Richard S.J. Tol, 2017. "Leaving an emissions trading scheme – insights from the United Kingdom," Working Paper Series 1017, Department of Economics, University of Sussex Business School.
    7. Cason, Timothy N. & Gangadharan, Lata, 2011. "Price discovery and intermediation in linked emissions trading markets: A laboratory study," Ecological Economics, Elsevier, vol. 70(7), pages 1424-1433, May.
    8. Georg Grull & Luca Taschini, 2012. "Linking Emission Trading Schemes: A Short Note," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 3).

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