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Contents

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programme, aimed at the acid rain problem, has been hailed as a great success in almost all areas. This column argues that the programme’s success may tell us something about whether cap and trade can be applied more widely in climate policy.", "blogTitle": "VoxEU.org", "websiteType": "", "date": "12 August 2012", "DOI": "", "citationKey": "", "url": "http://www.voxeu.org/article/lessons-climate-policy-us-sulphur-dioxide-cap-and-trade-programme", "accessDate": "2012-09-01T13:14:27Z", "ISSN": "", "shortTitle": "", "language": "", "rights": "", "extra": "", "tags": [], "collections": [], "relations": {}, "dateAdded": "2012-09-01T13:14:27Z", "dateModified": "2012-09-01T13:14:27Z" } }, { "key": "VCETKRIT", "version": 1, "library": { "type": "group", "id": 56454, "name": "SO2 allowance-trading program", "links": { "alternate": { "href": "https://www.zotero.org/groups/so2_allowance-trading_program", "type": "text/html" } } }, "links": { "self": { "href": "https://api.zotero.org/groups/56454/items/VCETKRIT", "type": "application/json" }, "alternate": { "href": "https://www.zotero.org/groups/so2_allowance-trading_program/items/VCETKRIT", "type": "text/html" } }, "meta": { "createdByUser": { "id": 747851, "username": "rstowe", "name": "Robert Stowe", "links": { "alternate": { "href": "https://www.zotero.org/rstowe", "type": "text/html" } } }, "creatorSummary": "Burtraw", "parsedDate": "2000-09", "numChildren": 0 }, "data": { "key": "VCETKRIT", "version": 1, "itemType": "report", "title": "Innovation Under the Tradable Sulfur Dioxide Emission Permits Program in the U.S. Electricity Sector", "creators": [ { "creatorType": "author", "firstName": "Dallas", "lastName": "Burtraw" } ], "abstractNote": "The 1990 U.S. Clean Air Act Amendments (CAAA) instituted a national program in tradable\nsulfur dioxide (SO2) emission permits, referred to as “emission allowances,” in the U.S. electricity sector.\nThis paper provides a survey and assessment of the SO2 allowance trading program with a focus on the\nrole of innovation. Over the last decade the cost of compliance has fallen dramatically compared with\nmost expectations, and today the total cost of the program is 40– 140% lower than projections (depending\non the timing of those projections and the counter-factual baseline considered). Marginal costs of\nreductions are less than one-half the cost considered in most analyses at the time the program was\nintroduced.\nInnovation accounts for a large portion of these cost savings, but not as typically formulated in\neconomic models of research and development (R&D) efforts to obtain patent discoveries. Innovation\nunder the SO2 allowance trading program involves organizational innovation at the firm, market and\nregulatory level and process innovation by electricity generators and upstream fuel suppliers. An\nimportant portion of the cost reductions that are evident was already in the works prior to and independent\nof the program. Nonetheless, the allowance trading program deserves significant credit for providing the\nincentive and flexibility to accelerate and to fully realize exogenous technical changes that were occurring\nin the industry. This marks a significant departure from conventional approaches to environmental\nregulation, which would not be expected to capture these savings. The ongoing transition to restructuring\nof electricity markets and expanding competition in electricity generation complements the design of the\nSO2 allowance trading program by providing firms with full incentives to reduce costs of pollution\ncontrol.", "reportNumber": "00–38", "reportType": "Discussion Paper", "institution": "Resources for the Future", "place": "Washington, D.C.", "date": "2000 September", "seriesTitle": "", "seriesNumber": "", "pages": "", "DOI": "", "ISBN": "", "citationKey": "", "url": "http://www.rff.org/Publications/Pages/PublicationDetails.aspx?PublicationID=17101", "accessDate": "", "ISSN": "", "archive": "", "archiveLocation": "", "shortTitle": "", "language": "", "libraryCatalog": "", "callNumber": "", "rights": "", "extra": "", "tags": [], "collections": [], "relations": {}, "dateAdded": "2011-10-10T16:36:07Z", "dateModified": "2012-08-03T16:18:15Z" } }, { "key": "2ZKX64XU", "version": 55, "library": { "type": "group", "id": 56454, "name": "SO2 allowance-trading program", "links": { "alternate": { "href": "https://www.zotero.org/groups/so2_allowance-trading_program", "type": "text/html" } } }, "links": { "self": { "href": "https://api.zotero.org/groups/56454/items/2ZKX64XU", "type": "application/json" }, "alternate": { "href": "https://www.zotero.org/groups/so2_allowance-trading_program/items/2ZKX64XU", "type": "text/html" }, "up": { "href": "https://api.zotero.org/groups/56454/items/Z3Z9TM47", "type": "application/json" } }, "meta": { "createdByUser": { "id": 747851, "username": "rstowe", "name": "Robert Stowe", "links": { "alternate": { "href": "https://www.zotero.org/rstowe", "type": "text/html" } } }, "numChildren": 0 }, "data": { "key": "2ZKX64XU", "version": 55, "parentItem": "Z3Z9TM47", "itemType": "attachment", "linkMode": "imported_url", "title": "JSTOR Full Text PDF", "accessDate": "2012-07-25T15:10:27Z", "url": "http://www.jstor.org.ezp-prod1.hul.harvard.edu/stable/pdfplus/10.1086%2F661942.pdf?acceptTC=true", "note": "", "contentType": "application/pdf", "charset": "", "filename": "Hahn and Stavins - 2011 - The Effect of Allowance Allocations on Cap-and-Tra.pdf", "md5": "af7e3e02e6c42ebc486013c622f81251", "mtime": 1343229031336, "tags": [], "relations": {}, "dateAdded": "2012-08-03T15:02:58Z", "dateModified": "2012-08-03T15:02:58Z" } }, { "key": "Z3Z9TM47", "version": 1, "library": { "type": "group", "id": 56454, "name": "SO2 allowance-trading program", "links": { "alternate": { "href": "https://www.zotero.org/groups/so2_allowance-trading_program", "type": "text/html" } } }, "links": { "self": { "href": "https://api.zotero.org/groups/56454/items/Z3Z9TM47", "type": "application/json" }, "alternate": { "href": "https://www.zotero.org/groups/so2_allowance-trading_program/items/Z3Z9TM47", "type": "text/html" } }, "meta": { "createdByUser": { "id": 747851, "username": "rstowe", "name": "Robert Stowe", "links": { "alternate": { "href": "https://www.zotero.org/rstowe", "type": "text/html" } } }, "creatorSummary": "Hahn and Stavins", "parsedDate": "2011-11", "numChildren": 1 }, "data": { "key": "Z3Z9TM47", "version": 1, "itemType": "journalArticle", "title": "The effect of allowance allocations on cap-and-trade system performance", "creators": [ { "creatorType": "author", "firstName": "Robert W.", "lastName": "Hahn" }, { "creatorType": "author", "firstName": "Robert N.", "lastName": "Stavins" } ], "abstractNote": "Abstract An implication of the Coase theorem is that under certain conditions, the market equilibrium in a cap-and-trade system will be cost-effective and independent of the initial allocation of tradable rights. That is, the overall cost of achieving a given aggregate emission reduction will be minimized, and the final allocation of permits will be independent of the initial allocation. We call this the independence property. This property is important because it means that the government can establish the overall pollution reduction goal for a cap-and-trade system by setting the cap and leaving it up to the legislature to construct a constituency in support of the program by allocating the allowances to various interests without affecting either the environmental performance of the system or its aggregate social costs. We examine the conditions under which the independence property is likely to hold—both in theory and in practice.", "publicationTitle": "Journal of Law and Economics", "publisher": "", "place": "", "date": "2011 November", "volume": "54", "issue": "4", "section": "", "partNumber": "", "partTitle": "", "pages": "S267-S294", "series": "", "seriesTitle": "", "seriesText": "", "journalAbbreviation": "", "DOI": "10.1086/661942", "citationKey": "", "url": "www.jstor.org/stable/10.1086/661942", "accessDate": "2012-07-25T15:10:27Z", "PMID": "", "PMCID": "", "ISSN": "0022-2186", "archive": "", "archiveLocation": "", "shortTitle": "", "language": "", "libraryCatalog": "JSTOR", "callNumber": "", "rights": "", "extra": "ArticleType: research-article / Issue Title: Markets, Firms, and Property Rights: A Celebration of the Research of Ronald Coase / Full publication date: November 2011 / Copyright © 2011 The University of Chicago", "tags": [], "collections": [], "relations": {}, "dateAdded": 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"T7NQJJX2", "version": 1, "itemType": "journalArticle", "title": "The SO2 Allowance Trading System and the Clean Air Act Amendments of 1990: Reflections on Twenty Years of Policy Innovation", "creators": [ { "creatorType": "author", "firstName": "Gabriel", "lastName": "Chan" }, { "creatorType": "author", "firstName": "Robert", "lastName": "Stavins" }, { "creatorType": "author", "firstName": "Robert", "lastName": "Stowe" }, { "creatorType": "author", "firstName": "Richard", "lastName": "Sweeney" } ], "abstractNote": "", "publicationTitle": "NBER Working Paper No. 17845", "publisher": "", "place": "", "date": "February 2012", "volume": "", "issue": "", "section": "", "partNumber": "", "partTitle": "", "pages": "", "series": "", "seriesTitle": "", "seriesText": "", "journalAbbreviation": "", "DOI": "", "citationKey": "", "url": "http://www.nber.org/papers/w17845", "accessDate": "", "PMID": "", "PMCID": "", "ISSN": "", "archive": "", "archiveLocation": "", "shortTitle": "", "language": "", 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Hyo-Sun Kim, Resources Policy This book makes a valuable contribution to the existing literature by bringing together a set of essays that reflect on US experience and examine attempts to introduce trading programs in Europe. . . . The book is accessible to the broad readership for which it is intended. Academics as well as policymakers will find this book worthwhile reading. Robert N. Stavins, Environment The strength of Sorrell and Skea s analysis comes from the wide selection of topics covered by the papers, all adding valuable often forgotten experience. . . . I believe this book to be an excellent addition to the library of anyone who is involved in climate change. It raises awareness of previous experience, both successes and failures, particularly from within Europe, from which lessons should be drawn. Christiaan Vrolijk, International Affairs Pollution for Sale is a useful reference book for those with an interest in climate change and acidification issues and the potential contribution of economic instruments to effective environmental policy making. Each chapter is accessible to the non-specialist and there is enough academic rigour and further references to keep the specialists satisfied. Pollution for Sale deserves to sell well and widely to academics, students, environmental consultants and policymakers. Rosalind Bark, Journal of Energy Literature Emissions trading has become a central feature of global efforts to control climate change. Its inclusion in the Kyoto Protocol to the Framework Convention on Climate Change represents a victory for advocates of market-based instruments and builds upon twenty years of experience with trading schemes in the United States. However, the concept is controversial and attempts to introduce similar trading schemes in Europe have met with mixed results. This timely book provides a comprehensive overview of the theory and practice of emissions trading including the lessons learnt, the problems faced and the prospects for its extended use. It includes case studies of trading schemes in the US and Europe, and studies of international trading under the European acid rain regime. Problems of practical implementation, especially institutional feasibility and political acceptability, are given particular attention. The prospects for the international trading of greenhouse gases following the Kyoto Protocol are assessed, together with the potential conflict between emissions trading and established regulatory traditions. 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