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The SO2 Allowance Trading System: The Ironic History of a Grand Policy Experiment.
- Source :
- Journal of Economic Perspectives; Winter2013, Vol. 27 Issue 1, p103-122, 20p, 1 Chart, 2 Graphs
- Publication Year :
- 2013
-
Abstract
- Two decades have passed since the Clean Air Act Amendments of 1990 launched a grand experiment in market-based environmental policy: the SO<subscript>2</subscript> cap-and-trade system. That system performed well but created four striking ironies: First, by creating this system to reduce SO<subscript>2</subscript> emissions to curb acid rain, the government did the right thing for the wrong reason. Second, a substantial source of this system's cost-effectiveness was an unanticipated consequence of earlier railroad deregulation. Third, it is ironic that cap-and-trade has come to be demonized by conservative politicians in recent years, as this market-based, cost-effective policy innovation was initially championed and implemented by Republican administrations. Fourth, court decisions and subsequent regulatory responses have led to the collapse of the SO<subscript>2</subscript> market, demonstrating that what the government gives, the government can take away. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 08953309
- Volume :
- 27
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Journal of Economic Perspectives
- Publication Type :
- Academic Journal
- Accession number :
- 85292934
- Full Text :
- https://doi.org/10.1257/jep.27.1.103