Alternatives to Cap and Trade pp.47-59

Alternatives to Cap and Trade pp.47-59 - Alternatives to...

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Alternatives to Cap and Trade Kyle Albers Peter Canepa
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Market - based? Fixed Variable Political Feasibility Cost – Effectiveness Environment – Effectiveness Distributional Equity General Advantages Standards - Based polices No Technolo gy and Performa nce Standards High Limited Scope Uniform Requirements Weak Incentives for development of new Technology Inflexible Only Targets New Technology and Capital Equipment Exemptions, due to equity, reduces emissions covered by policy No incentive to reduce beyond standard Total emissions costs are not accounted for (only costs of emission reductions) Forces use of BACT avoids market failures of imperfect information and lack of Carbon Tax Yes Price Low Sends price signals to reduce carbon emissions Cost(Firm) = Abatement + Taxes Does not ensure emissions reduction target Exemptions, due to equity, reduces emissions covered by policy Policy-makers decide how to use resulting revenue
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Alternatives to Cap and Trade pp.47-59 - Alternatives to...

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