Emissions Trading Programs: Volume I: Implementation and Evolution Volume II: Theory and Design

A comprehensive collection of the leading articles on emissions trading, from its early implementation in the USA to its application to global warming in the Kyoto Protocol.

Format: Hardback
Publication date: 01 January 2021
Publisher: Taylor & Francis Ltd

A comprehensive compilation of the most influential articles that have shaped the utilization of emissions trading as a means to mitigate air pollution, encompassing its inception in the United States in 1976 and its application to address global warming in the Kyoto Protocol.

The utilization of emissions trading has emerged as a pivotal strategy in the global fight against air pollution. This approach involves the trading of permits or credits, allowing entities to emit certain pollutants within predefined limits. By implementing emissions trading, governments can establish a market-based mechanism to regulate pollution, incentivizing companies to adopt cleaner technologies and reduce their environmental footprint.

The history of emissions trading can be traced back to the United States, where it was first implemented in 1976 to address air pollution concerns in specific regions. The Clean Air Act Amendments of that year established a system for issuing permits to polluting industries, allowing them to emit a certain amount of pollutants. These permits could be bought, sold, or traded, providing flexibility to companies in meeting their environmental targets.

Over the years, emissions trading has evolved and expanded its application beyond air pollution control. It has been used to address climate change, particularly through the Kyoto Protocol, which was adopted in 1997. Under the Protocol, countries committed to reducing their greenhouse gas emissions and establishing a cap-and-trade system to regulate emissions.

Emissions trading has several advantages over traditional regulatory approaches. Firstly, it allows for a more flexible and cost-effective way of achieving environmental goals. By setting emissions limits and creating a market for permits, companies can find the most efficient and cost-effective ways to reduce their pollution. This can lead to innovation and investment in cleaner technologies, which can have long-term benefits for the environment and the economy.

Secondly, emissions trading promotes international cooperation and collaboration. By setting common emissions targets and allowing countries to trade permits, emissions trading creates a framework for cooperation and mutual support. This can help to address global climate change, which is a complex and transnational issue that requires collective action.

Thirdly, emissions trading can help to achieve a balance between economic growth and environmental protection. By allowing companies to trade permits, emissions trading can incentivize them to invest in cleaner technologies and reduce their pollution. This can lead to economic benefits, such as job creation and increased competitiveness, while also reducing environmental impacts.

However, emissions trading also faces several challenges. One of the main challenges is the potential for carbon leakage, which occurs when companies relocate their production or operations to countries with less strict environmental regulations. This can undermine the effectiveness of emissions trading and negate the environmental benefits of reducing pollution.

Another challenge is the need for robust monitoring and enforcement mechanisms to ensure that emissions trading is implemented effectively and that companies meet their emissions targets. This requires a strong regulatory framework and effective monitoring and enforcement mechanisms to ensure that companies are held accountable for their pollution.

Despite these challenges, emissions trading remains a crucial tool in the fight against air pollution and climate change. By promoting international cooperation, incentivizing innovation, and achieving a balance between economic growth and environmental protection, emissions trading has the potential to make a significant impact on the global environment.

In conclusion, emissions trading has emerged as a powerful tool in the global fight against air pollution and climate change. By allowing companies to trade permits and credits, emissions trading creates a market-based mechanism to regulate pollution, incentivize cleaner technologies, and achieve environmental goals. While facing challenges such as carbon leakage and the need for robust monitoring and enforcement mechanisms, emissions trading remains a crucial component of the global effort to address these pressing issues. As we continue to grapple with the impacts of climate change, emissions trading will likely play an increasingly important role in shaping our future.

ISBN-13: 9781138734302