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Tools of the Trade: A Guide to Designing and Operating a Cap and Trade Program for Pollution Control
United States Environmental Protection Agency, Office of Air and Radiation

EPA has developed a new publication--"Tools of the Trade"-- that is a guidebook for governments considering cap and trade as a policy tool to control pollution. Cap and trade is the form of permit trading used in the U.S. to reduce sulfur dioxide emissions, which cause acid rain and other environmental and public health problems. "Tools of the Trade" is intended to be sufficiently generic to apply to various pollutants and environmental concerns; however, it emphasizes cap and trade to control emissions produced from large, stationary sources. The publication was written by staff of the Clean Air Markets Division, the group at EPA that operates cap and trade programs for sulfur dioxide and nitrogen oxides.

The primary audience of the publication is foreign governments who are considering emissions trading programs. The guidebook discusses how to determine if cap and trade is the right solution for a particular problem and describes how it varies from other policy options, including other forms of emissions trading. In addition, it explains the processes for developing and implementing a cap and trade program. Finally, "Tools of the Trade" discusses how to assess the results of a cap and trade program and communicate them to the public.

The report is available from the EPA website at:

http://www.epa.gov/airmarkets/international/tools.pdf

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Topics
Policies and instruments
Industrial air pollution
Authors
EPA - Environmental Protection Agency

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