Emission trading ("ET") is seen to have advantages over the old command and control ("CAC") regime to both regulators and industry. The purpose of the paper will be to use the case studies as an archetype for creating a global warming emissions trading system ("GW-ETS").
Since ET is the
new regulatory scheme on the block, there is much discussion about it but
little in the way of case study. In fact, the only country to implement
an emission trading market is the U.S. Because the only cases of
ET implementation are done under a national government there will be some
things that cannot be or will be more difficult to duplicate on the global
level. Therefore, the first
section of my paper will deal with the main difference found when regulations
are carried out under a unitary fiat or majority rule system (national
governments) vs. a voluntary assent/voting scheme (international treaties).
section of the paper will deal with the lessons to be taken from the
acid rain regime. The ETS's that I will evaluate are REgional CLean
AIr Market (RECLAIM) that deals with their smog by regulating Nitrogen
Oxide (NOx), Sulfur Oxide (SOx) and volatile organic compound (VOC) emissions,
in Los Angeles, California and the acid rain emission trading system ("AR-ETS")
under the clean air acts ("CAAs") [EN1]
IV [EN2] that deals with Sulfur Dioxide
(SO2) emissions. The discussion of RECLAIM will be broken into two parts.
The first subsection will deal with
NOx/SOx and the second subsection will deal
with VOC. This is done to highlight the circumstances that caused
VOC not to be implemented, while NOx/SOx was implemented. The comparison
of VOC and the NOx/SOx programs should offer some interesting insights
into what can cause the failure or success of an emission trading system
("ETS"). The AR-ETS will then be evaluated
to see how to create an effective ETS.
In the conclusion, I will try to wrap up the lessons to be garnered from the case studies as a blueprint for formulating a GW-ETS. The first half of the conclusion will deal with getting acceptance as learned from the discussion on voluntary assent and RECLAIM. Then I will discuss what is needed to create an effective ETS as learned from the AR-ETS. Woohoo... So lets get started.