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Sulfur allowance trading and the regional clean air incentives market: How similar are the programs really?

Author

Listed:
  • Schwarze, Reimund
  • Zapfel, Peter

Abstract

This paper investigates in detail the design parameters of the two most prominent U.S. tradeable emission permit program - the U.S. EPA Sulfur Allowance Trading Program and the South Californian Regional Clean Air Incentives Market (RECLAIM). In contrast to expectations and the existing literature the two programs turn out to be rather different in several important design parameter choices. Common elements emerge primarily in the existence of an ambitious, quantified environmental target, stringent emission monitoring methods and high penalties for non-compliance, the importance of a competitive permit market, and some compromises necessary in order to gain political acceptability for the instrument and program.

Suggested Citation

  • Schwarze, Reimund & Zapfel, Peter, 1998. "Sulfur allowance trading and the regional clean air incentives market: How similar are the programs really?," MPRA Paper 52751, University Library of Munich, Germany, revised 02 Nov 1999.
    • Handle: RePEc:pra:mprapa:52751
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Bräuer, Wolfgang & Stronzik, Marcus & Michaelowa, Axel, 2000. "Die Koexistenz von Zertifikatemärkten für grünen Strom und CO2-Emissionen: Wer gewinnt und wer verliert?," HWWA Discussion Papers 96, Hamburg Institute of International Economics (HWWA).

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    More about this item

    Keywords

    Environmental regulation; tradeable permits; policy design; Sulfur Allowance Trading; RECLAIM;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling

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