Abstract

Much has been written about the economic and environmental performance of U.S. emissions trading programs for sulfur dioxide and nitrogen oxides. Less explored have been the unique roles and interactions of environmental regulators and the companies they regulate in these programs. The paper uses examples from U.S. trading programs to illustrate the design and administrative features that allow program administrators and companies to best fulfill their respective roles. The paper also examines whether these features are present in the EU Emissions Trading System and analyzes the implications for its effectiveness.

The paper is available at:
http://www.rff.org/rff/Documents/RFF-DP-05-03.pdf