Transportation and Domestic Greenhouse Gas Emissions Trading

April 2000 | Steve Winkelman, Tim Hargrave, Christine Vanderlan

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 a discussion of the range of options available to reduce emissions from on-road transportation sources. While emissions trading does not guarantee reductions specifically from transportation sources, if designed correctly it is preferred to other policy approaches because it both provides greater certainty that overall emissions goals will be met and results in cost-effective achievement of these goals.

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