scholarly journals Cap-and-Trade: The Evolution of an Economic Idea

2010 ◽  
Vol 39 (3) ◽  
pp. 359-367 ◽  
Author(s):  
Tom Tietenberg

Over the past three decades or so, emissions trading has evolved from an idea that was little more than an academic curiosity to its current role as the centerpiece of the U.S. program to control acid rain and international programs to control greenhouse gases. This essay identifies some of the key milestones of this evolution, describes how that evolution was shaped by economic analysis, elicits some of the lessons about the design and effectiveness of emissions trading that have emerged from analysis of that evolution, and points out a few of the barriers that lie in the path of achieving a truly global carbon market.

1998 ◽  
Vol 12 (3) ◽  
pp. 53-68 ◽  
Author(s):  
Richard Schmalensee ◽  
Paul L Joskow ◽  
A. Denny Ellerman ◽  
Juan Pablo Montero ◽  
Elizabeth M Bailey

This paper summarizes recent empirical research on compliance costs and strategies and on permit market performance under the U.S. acid rain program, the first large-scale, long-term program to use tradeable emissions permits to control pollution. An efficient market for emissions permits developed in a few years, and this program more than achieved its early goals on time, and it cost less than had been projected. Because of expectation errors, however, investment was excessive, and permit prices substantially understate abatement costs. The tradeable permits approach has worked well, but it is not a miracle cure for environmental problems. Coauthors are Paul L. Joskow, A. Denny Ellerman, Juan Pablo Montero, and Elizabeth M. Bailey.


2009 ◽  
Vol 20 (6) ◽  
pp. 901-926 ◽  
Author(s):  
Alyssa Gilbert

With the rising popularity of emissions trading schemes and the private sector call for a global carbon market, it seems as though there is the chance to solve climate change by simply providing a clear price signal. But how easy will this be, both technically and practically? This paper provides an overview of the challenges in policy design terms involved in directly linking existing emissions trading schemes, and the status of planned emissions trading schemes, in order to set the potential of establishing a policy framework for a global carbon market in a realistic frame. The paper begins by outlining what linking is and setting out the advantages and risks of linking schemes. The key criteria to consider in order to establish compatibility for linking are explored, and then a summary of existing or planned schemes is given to highlight some of the technical challenges involved in linking emissions trading schemes together. The paper goes on to describe how a linked scheme could be set up and then moves on to the political arena, looking more closely at the political benefits and risks of linking and then discussing whether or not linking emissions trading schemes is an element of, or an alternative to, a global climate policy.


2015 ◽  
Vol 2 (1) ◽  
Author(s):  
K. V. Bhanu Murthy ◽  
Sakshi Gambhir

The global energy landscape is rapidly changing as a result of economic shifts and technological breakthroughs. There has been an increased focus on climate change through the phenomenon of global warming, which is caused by accumulation of green house gases (GHG) in the atmosphere. Efforts have been underway at the international as well as national level for abatement of GHG emissions through cost-effective and sustainable solutions. The UNFCCC with its mandate of a safer future launched the Kyoto Protocol in 1997, to firm-up ongoing efforts for stabilizing the ecosystems. The Protocol commits its Parties through internationally binding emission reduction commitments. The idea was to create an international unified carbon market, which would render a check on the worldwide emission levels. However, actual experience with the markets has revealed that the dream of a global top-down market is far from being realised. Against this backdrop, this paper attempts to review the evolution of carbon markets, through the mechanism of International Emissions Trading. It also highlights some trends and developments that have characterised these markets over the past few years. Overall, the literature seems to signify the emergence of a decentralised bottom-up design of the market. There is a multitude of regional, national and subnational markets in operation, with EU ETS as the frontrunner. Moreover, these systems are starting to link with one another to facilitate the evolution of an international carbon market, in the wake of an unpromising future outlook for Kyoto credits.


Author(s):  
Kaufui V. Wong ◽  
John Plackemeier

The World Bank and the Intergovernmental panel on climate change have concluded that human activities such as fossil fuel combustion have caused higher average temperatures, more violent weather patterns and higher sea levels. Governments, politicians and corporations have started to take steps to curb emissions of carbon dioxide and other greenhouse gases to reduce its imbalance in the atmosphere, and in so doing, diminish the impacts it will have in the near future. While these parties have recognized the importance of significantly reducing emissions in the coming decades, there are currently no policies in the USA to accomplish these goals. At the same time that the need to reduce emissions become more and more apparent, the realization that the world’s current economy is highly carbon-dependent and that shifting to renewable energy sources would be extremely expensive as well, thus compelling governments to approach the problem cautiously. Maybe because of this reality, governments have preferred emissions trading schemes over emissions caps and taxes with no trading. Unlike a cap affecting carbon emitters uniformly, the trading schemes that have been introduced recently allow for a collective cap on emissions under which emitters are held to standards which can be achieved by reducing emissions or by buying carbon credits, which are emissions reductions that have been achieved by a different third party. At this time, the Kyoto Protocol is the most comprehensive of the commitments governments have made toward the ultimate aim of curbing greenhouse gases. Under its umbrella, many of the world’s industrialized nations (excluding the US, which signed but did not ratify owing to economic concerns) agreed to an emissions reduction of 6 to 8 percent from 1990 levels by 2012. Governments are responsible for reducing overall emissions and do this by passing on reduction goals to specific emitters who can reduce their emissions through a slew of methods. The methods include directly reducing carbon emitted as gas or purchasing carbon credits that provide a reduction in place of emissions that cannot be directly reduced. While fossil fuels have played an important role in the development of the world in the past century, financial markets have had an equally important role in creating economic growth. Emissions trading schemes have emerged in the past five years as a method to reduce carbon dioxide emissions through market forces. They are an attractive solution because they grant economic leeway to subject parties. While they carry this benefit, they are not universally ideal. This paper aims to identify the most effective ways in which emissions trading schemes can be used. An analysis of the limitations of emissions trading schemes is conducted with respect to technological and regulatory concerns in addition to different economic sectors. Further analysis of the benefits of large scale emissions trading schemes over other large scale emissions reduction methods is conducted. From this analysis, a full recommendation of strategies which would maximize the effectiveness of an emissions trading scheme is provided.


Author(s):  
D Samba Reddy

This article provides a brief overview of novel drugs approved by the U.S. FDA in 2016.  It also focuses on the emerging boom in the development of neurodrugs for central nervous system (CNS) disorders. These new drugs are innovative products that often help advance clinical care worldwide, and in 2016, twenty-two such drugs were approved by the FDA. The list includes the first new drug for disorders such as spinal muscular atrophy, Duchenne muscular dystrophy or hallucinations and delusions of Parkinson’s disease, among several others. Notably, nine of twenty-two (40%) were novel CNS drugs, indicating the industry shifting to neurodrugs. Neurodrugs are the top selling pharmaceuticals worldwide, especially in America and Europe. Therapeutic neurodrugs have proven their significance many times in the past few decades, and the CNS drug portfolio represents some of the most valuable agents in the current pipeline. Many neuroproducts are vital or essential medicines in the current therapeutic armamentarium, including dozens of “blockbuster drugs” (drugs with $1 billion sales potential).  These drugs include antidepressants, antimigraine medications, and anti-epilepsy medications. The rise in neurodrugs’ sales is predominantly due to increased diagnoses of CNS conditions. The boom for neuromedicines is evident from the recent rise in investment, production, and introduction of new CNS drugs.  There are many promising neurodrugs still in the pipeline, which are developed based on the validated “mechanism-based” strategy. Overall, disease-modifying neurodrugs that can prevent or cure serious diseases, such as multiple sclerosis, epilepsy, and Alzheimer’s disease, are in high demand. 


Author(s):  
Raymond J. Batvinis

Counterintelligence is the business of identifying and dealing with foreign intelligence threats to a nation, such as the United States. Its main concern is the intelligence services of foreign states and similar organizations of non-state actors, such as transnational terrorist groups. Counterintelligence functions both as a defensive measure that protects the nation's secrets and assets against foreign intelligence penetration and as an offensive measure to find out what foreign intelligence organizations are planning to defeat better their aim. This article addresses the Federal Bureau of Investigation's (FBI) foreign counterintelligence function. It briefly traces its evolution by examining the key events and the issues that effected its growth as the principle civilian counterintelligence service of the U.S. government.


The Holocene ◽  
2020 ◽  
Vol 30 (7) ◽  
pp. 1091-1096 ◽  
Author(s):  
Eleanor MB Pereboom ◽  
Richard S Vachula ◽  
Yongsong Huang ◽  
James Russell

Wildfires in the Arctic tundra have become increasingly frequent in recent years and have important implications for tundra ecosystems and for the global carbon cycle. Lake sediment–based records are the primary means of understanding the climatic influences on tundra fires. Sedimentary charcoal has been used to infer climate-driven changes in tundra fire frequency but thus far cannot differentiate characteristics of the vegetation burnt during fire events. In forested ecosystems, charcoal morphologies have been used to distinguish changes in fuel type consumed by wildfires of the past; however, no such approach has been developed for tundra ecosystems. We show experimentally that charcoal morphologies can be used to differentiate graminoid (mean = 6.77; standard deviation (SD) = 0.23) and shrub (mean = 2.42; SD = 1.86) biomass burnt in tundra fire records. This study is a first step needed to construct more nuanced tundra wildfire histories and to understand how wildfire will impact the region as vegetation and fire change in the future.


2001 ◽  
Vol 1 ◽  
pp. 953-957 ◽  
Author(s):  
Stephanie Benkovic ◽  
Joseph Kruger

The use of emissions trading (cap and trade) is gaining worldwide recognition as an extremely effective policy tool. The U.S. Sulfur Dioxide (SO2) Emissions Trading Program has achieved an unprecedented level of environmental protection in a cost-effective manner. The successful results of the program have led domestic and foreign governments to consider the application of cap and trade to address other air quality issues. Certain analyses are particularly important in determining whether or not cap and trade is an appropriate policy tool. This paper offers a set of questions that can be used as criteria for determining whether or not cap and trade is the preferred policy approach to an environmental problem.


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