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Environmental Commodities Markets and Emissions Trading

Towards a Low-Carbon Future

By Blas Luis Pérez Henríquez

RFF Press – 2013 – 296 pages

Purchasing Options:

  • Add to CartPaperback: $49.95
    978-1-61726-095-7
    December 19th 2012
  • Add to CartHardback: $145.00
    978-1-61726-094-0
    December 20th 2012

Description

Market-based solutions to environmental problems offer great promise, but require complex public policies that take into account the many institutional factors necessary for the market to work and that guard against the social forces that can derail good public policies. Using insights about markets from the new institutional economics, this book sheds light on the institutional history of the emissions trading concept as it has evolved across different contexts. It makes accessible the policy design and practical implementation aspects of a key tool for fighting climate change: emissions trading systems (ETS) for environmental control.

Blas Luis Pérez Henríquez analyzes past market-based environmental programs to extract lessons for the future of ETS. He follows the development of the emissions trading concept as it evolved in the United States and was later applied in the multinational European Emissions Trading System and in sub-national programs in the United States such as the Regional Greenhouse Gas Initiative (RGGI) and California’s ETS. This ex-post evaluation of an ETS as it evolves in real time in the real world provides a valuable supplement to what is already known from theoretical arguments and simulation studies about the advantages and disadvantages of the market strategy.

Political cycles and political debate over the use of markets for environmental control make any form of climate policy extremely contentious. Pérez Henríquez argues that, despite ideological disagreements, the ETS approach, or, more popularly, 'cap-and-trade' policy design, remains the best hope for a cost-effective policy to reduce GHG emissions around the world.

Contents

1. Introduction 2. Theoretical Foundations 3. Creating Efficient Environmental Commodities Markets 4. The First Generation of Air Pollution Trading Systems 5. State-of-the-Art Market-Based Environmental Policy 6. Local Market-Based Environmental Policy 7. Interstate Market-Based Environmental Policy 8. International Market-Based Environmental Policy

Author Bio

Blas Luis Pérez Henríquez is Director of the Center for Environmental Public Policy, University of California, Berkeley, USA; Senior Visiting Fellow at the Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, London, UK; and Visiting Professor at the Center for Economic Research and Teaching (CIDE), Mexico City, Mexico.

Name: Environmental Commodities Markets and Emissions Trading: Towards a Low-Carbon Future (Paperback)RFF Press 
Description: By Blas Luis Pérez Henríquez. Market-based solutions to environmental problems offer great promise, but require complex public policies that take into account the many institutional factors necessary for the market to work and that guard against the social forces that can derail good...
Categories: Environment & Economics, Environmental Economics, Governance - Politics & International Relations, Climate Change, Economics, Environmental Sciences, Politics & International Relations, Sustainable Development, Environmental Policy, Environmental Management, Environmental Politics