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Tradable Intensity Standard for Sector Crediting

This paper addresses some issues that will need to be addressed to implement NAMAs and sector crediting. It discusses cap-and-trade programs for developing countries, international linkages, emission caps for certain sectors through “trading” programs, and No-Lose approaches. It highlights some of the key advantages at the present time of employing a tradable intensity standard to... continue reading »

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Preventing Market Disruptions in Cap-and-Trade Programs

This paper discusses trading system design elements that could help prevent market disruptions, including aspects of allowance auctions, transaction registries, allowance banking, and price stabilizing mechanisms. It raises the possibility of employing temporary, special methods in the early years of program implementation to create an added degree of safety as firms and regulators gain experience... continue reading »

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An Upstream/Downstream Hybrid Approach to Greenhouse Gas Emissions Trading

Part of the Airlie Carbon Trading Papers, this report examines alternative approaches to expanding the coverage of a downstream trading system by bringing in facilities from farther upstream. It calls attention to a number of issues that would need to be addressed in integrating upstream and downstream facilities into a single system, most notably the... continue reading »

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Transportation and Domestic Greenhouse Gas Emissions Trading

Part of the Airlie Carbon Trading Papers, this report examines four approaches to carbon emissions trading for transportation emissions in the United States: upstream trading, vehicle maker-based trading, an upstream/vehicle maker hybrid, and upstream trading combined with vehicle maker carbon efficiency standards. To put consideration of emissions trading in a broader context, we begin with... continue reading »

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Identifying the Proper Incidence of Regulation in a European Union Greenhouse Gas Emissions Allowance Trading System

This paper compares upstream, downstream and hybrid approaches to designing a greenhouse gas cap-and-trade system for the European Union. These trading models are assessed with reference to five policy criteria: economic efficiency, environmental effectiveness, distributional implications, administrative feasibility and cultural acceptability. This paper focuses on the first three criteria while noting considerations relevant to the... continue reading »

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Design of a Practical Approach to Greenhouse Gas Emissions Trading Combined with Policies and Measures in the EC

This paper provides a “strawman” proposal, originally intended to generate dialogue with Member States present at a 1999 workshop. The proposal provides a detailed profile of how a more limited EU-wide emissions trading system covering selected industrial sectors combined with the current system of policies and measures could go into effect in advance of 2008.

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Allocation of Greenhouse Gas Reduction Responsibilities Among and Within the Countries of the European Union

This paper deals with the issues relating to the allocation of emission allowances (or equivalently Parts of Assigned Amount, PAAs) among and within States. This paper was prepared primarily to provide background information to members of the Study Team on key issues related to the design of an European emissions trading scheme and to assist the... continue reading »

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The Treatment of Biomass Fuels in Carbon Emissions Trading Systems

Part of the Airlie Carbon Trading Papers, this report presents an approach for including biomass fuels in a carbon emissions trading program. Under this method, plantations that produce carbon-neutral biomass would be certified as having done so. An upstream trading system (where mission allowances are required of fuel producers) would mean that the plantations would... continue reading »

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Accounting for Non-fuel Uses of Fossil Fuels in an Upstream Carbon Trading System

Part of the Airlie Carbon Trading Papers, this report provides a closer look at the use of fossil energy for non-fuel purposes in the US, and then presents alternative policy options for accounting for this non-fuel use in an upstream trading system. The paper argues for a two-track approach to accounting for non-fuel uses: First,... continue reading »

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Tradable Carbon Allowance Auctions: How and Why to Auction

Part of the Airlie Carbon Trading Papers, this report argues that an auction is the best way to allocate allowances in a carbon cap-and-trade system.To minimize administrative costs, allowances would be required primarily at the level of oil refineries, natural gas pipelines, natural gas liquid sellers, and coal processing plants. To maximize liquidity in secondary... continue reading »