Article: Emissions Trading For Air Quality And Climate Change In The United States And Europe - Part 1.

This article first appeared in newly released book from NERA Economic Consulting, 'The Line in the Sand: The Shifting Boundary Between Markets and Regulation in Network Industries'. With a foreword by Alfred E Kahn.

I. INTRODUCTION AND BACKGROUND

Emissions trading has emerged over the last decade as a major tool for controlling air pollution and climate change in both the United States and Europe. The European Union Emissions Trading Scheme (EU ETS) for carbon dioxide (CO2) launched in January 2005 has provided important experience and visibility for the approach and highlighted its applicability to climate change policy. Indeed, in the United States ...

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