Unit 8 - Cap & Trade Flashcards
Canadian Coalition on Acid Rain
Began in 1981
Raised awareness of the acid rain issue, through advocacy, educational programs, and by lobbying the governments of Canada and the US
With the passage of amendments to the US Clean Air Act, in 1990, the Coalition’s mandate was completed and the group disbanded
Eastern Canada Acid Rain Program
Instituted in 1985 - Program surpassed its goals by 14%
Achieved through the intensive command and control: Technology and Procedure Standards
Each province developed its own regulations, and undertook negotiations with individual producers
“Held the industries hand through the process”
Introduced scrubbers in plants
Target Load
The amount of pollution that is deemed achievable and politically acceptable
US Acid Rain Policy Approach
In 1991 Canada-US Air Quality Agreement was signed
US system initiated system based upon tradable quotas (aka Tradable Permits or Cap and Trade system)
Which Program Was More Successful and Why: US Acid Rain Approach or Eastern Canada Acid Rain Program
US Program was significantly less expensive and more effective
Competition encouraged continuous incentive to innovate least cost reduction strategies through innovation
free market oriented policies make the most optimal outcome
Quebec and California’s Cap & Trade System
Targeted at high emitters
The government establishes GHG emissions unit caps, that progressively decline over time to reduce overall emissions
The government will sell emissions permits 4 times a year at an auction
Border Carbon Adjustments for Canada
Essentially, this system puts a tax based on carbon emissions that were produced elsewhere, so all of the carbon emissions are included in the cost of a product
Attributes of Cap & Trade when compared to Carbon Tax
More complicated, expensive, and politically resilient, but with more certainty on total emissions
Less certainty on cost for emitters
Attributes of Carbon Tax when compared to Cap & Trade
Simpler, more certainty on cost for emitters
Less certainty on total emissions, and less politically resilient
