Augusta Wilson – Despite the strong consensus in the scientific community that anthropogenic climate change requires urgent attention, neither the United States nor Canada has implemented a comprehensive national policy to reduce greenhouse gas emissions.  Into this void have stepped two regional cap-and-trade programs that regulate greenhouse gas emissions in parts of both countries.  One, the Regional Greenhouse Gas Initiative (“RGGI”), is a partnership of nine states in the northeastern and mid-Atlantic U.S.  The other, the Western Climate Initiative (the “WCI”), is a partnership between California and the Provinces of Québec and Ontario.   Both programs have been operating for several years, demonstrating that cap-and-trade programs can achieve cost- effective emissions reductions.   Nonetheless, both markets have faced difficulties at various points, including volatility of allowance prices and the withdrawal of partner jurisdictions. One often-cited mechanism for improving the functioning of cap-and-trade markets is to link them with other markets.  In this […]

Linking Across Borders: Opportunities and Obstacles for a Joint Regional Greenhouse Gas Initiative-Western Climate Initiative ...

Justin Gundlach – This Article assumes that the federal government will assign a price to carbon dioxide emissions via legislation by the early 2020s for one or more of myriad reasons.  This Article’s purpose, however, is not to substantiate that assumption, but to explore a particular aspect of the adoption of such legislation.  The contents of that legislation will reflect negotiated agreements—built on various political tradeoffs—over a host of policy issues, ranging from taxes to energy efficiency standards.  These tradeoffs would implicate not only the tax’s scope and rate, but also the policies with which the tax would interact.  This Article describes interactions between a carbon tax and various existing and proposed policies relating to climate change, energy, and environmental protection.  It proceeds in five parts: Part II highlights three key points of background; Part III summarizes the universe of policies that can be expected to interact with a carbon […]

To Negotiate a Carbon Tax: A Rough Map of Interactions, Tradeoffs, and Risks