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MIT analysis shows how cap-and-trade plans can cut greenhouse emissions
Date:11/13/2008

een state and federal regulations on greenhouse gas emissions. With no federal policy now in place, many states are moving forward with their own initiatives, which range from commitments to reduce greenhouse gases to a regional, multi-state cap-and-trade program slated to begin in 2009.

While federal legislation is expected in the next few years, it is unclear how it will define the relationship between a federal cap-and-trade program and other state or regional initiatives. The report analyzes the economic and environmental impacts of the range of possible interactions between the federal program and state or regional programs.

Differences in the abatement costs among states can create economic inefficiencies that make achievement of the climate goal more costly than it need be. This inefficiency can be avoided by either federal preemption of duplicative state programs, the authors found, or by a "carve out" of more demanding state programs from the federal cap with linkage.


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Contact: Jen Hirsch
jfhirsch@mit.edu
617-253-1682
Massachusetts Institute of Technology
Source:Eurekalert

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