Lessons Learned from Three Decades of Experience with Cap-and-Trade

Resources for the Future Discussion Paper 15-51

26 Pages Posted: 20 Nov 2015

See all articles by Richard Schmalensee

Richard Schmalensee

Massachusetts Institute of Technology (MIT) - Sloan School of Management

Robert N. Stavins

Harvard University - Harvard Kennedy School (HKS); Resources for the Future; National Bureau of Economic Research (NBER)

Multiple version iconThere are 5 versions of this paper

Date Written: November 17, 2015

Abstract

This essay provides an overview of the major emissions trading programs of the past thirty years on which significant documentation exists, and draws a number of important lessons for future applications of this environmental policy instrument. References to a larger number of other emissions trading programs that have been implemented or proposed are included.

Keywords: market-based instruments, cap-and-trade, leaded gasoline phasedown, Clean Air Act amendments of 1990, sulfur dioxide, acid rain, carbon dioxide, global climate change, European Union Emissions Trading System

JEL Classification: Q540, Q580, Q400, Q480

Suggested Citation

Schmalensee, Richard and Stavins, Robert N., Lessons Learned from Three Decades of Experience with Cap-and-Trade (November 17, 2015). Resources for the Future Discussion Paper 15-51. Available at SSRN: https://ssrn.com/abstract=2692570 or http://dx.doi.org/10.2139/ssrn.2692570

Richard Schmalensee (Contact Author)

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

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Robert N. Stavins

Harvard University - Harvard Kennedy School (HKS) ( email )

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Resources for the Future

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