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Trading on Carbon: How Markets Will Save the World

Utilities should plan for U.S.-wide CO2 emissions restrictions that will be more effective than state efforts.

Fortnightly Magazine - January 2007

the strong and unified resistance to carbon emissions restrictions from energy-intensive industries. 11

 

Endnotes:

1. See Appendix - State-Level Programs Addressing CO 2 Emissions Reductions.

2. See Appendix - Regional Greenhouse Gas Initiative (RGGI).

3. See article sidebar, “How Coal-Dependent Utilities Will Stay Clean.”

4. Future Carbon Regulations and Current Investments in Alternative Coal-Fired Power Plant Designs Ram C. Sekar, John E. Parsons, Howard J. Herzog and Henry D. Jacoby, MIT Joint Program on the Science and Policy of Global Change, Report No. 129, December 2005.

5. See “ How Coal-Dependent Utilities Will Stay Clean .”

6. The allocation mechanisms for Phase I of the EU ETS were determined at a national level allowing significant space for experimentation. The allocation mechanisms for Phase II and later will be much more standardized across the EU based upon specific experiences within Phase I EU ETS participant countries.

7. Benchmarking - Creating Incentives for Abatement?, CEPS Task Force on Review of the EU ETS, 24 May 2005, Lars Zetterberg, IVL.

8. For a detailed discussion of theory behind different allocations see Absolute vs. Intensity-Based Emission Caps A. Denny Ellerman and Ian Sue Wing, MIT Joint Program on the Science and Policy of Global Change, Report No. 100, July 2003.

9. Monitoring small emitters would probably require a hybrid scheme whereby one uses emission factors along with inspection certificates, similar to the urban emissions inspections regimes that are now in place for automobiles. See also: “Bringing Transportation into a Cap-and-Trade Regime,” A. Denny Ellerman, Henry D. Jacoby and Martin B. Zimmerman, MIT Joint Program on the Science and Policy of Global Change, Report No. 136, June 2006.

10. “Analysis of National Allocation Plans for the EU ETS”, IVL Swedish Environmental Research Institute, Zetterberg, Lars, August 2004.

11. See: The Alliance of Energy Intensive Industries publications, “Contribution to the EU Energy Strategic Review: Urgent Measures are Required to Improve the Functioning of Electricity and Gas Markets,” Brussels, 22nd September 2006 and “4th Annual Workshop on Greenhouse Gas Emission Trading” 4th & 5th October 2004.

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