Just another brother from the Wu hood
Jim Tseng
CARBON TRADING SCHEME IN THE U.S
Background Information: Carbon TradeAbstained from the Kyoto Protocol.Companies may choose (voluntary)
dukespace.lib.duke.edu
Market FailureCost of pollution is no cost!Negative Externality for the third party.
Chicago Climate Exchange (CCX)Voluntary binding commitment Cut back emission production by 6% below
the baseline at the end of 2010Certain standard of emissionsMembers who exceed the allowance will
have to buy carbon allowance.Transparent processtax
Ford MotorsCar industryEmissions by production and consumptionOne of the first automobile companies to
joinFord recently was the first automaker to
submit a voluntary GHG report in China for its Chang An Ford Mazda Automobile Co., Ltd. facility in Chongqing, China.
Proposed Remedy
4 policies CO2
1. utilize the traditional EPA command-and-control policy
2. Encourage Asian Pacific PartnershipEncourage voluntary measures
3. Utilize Cap & Trade Approach
4. National carbon tax Political non-starter in the US
Command-and-control potentially enormous economic inefficiencies
Stake-holdersGovernmentConsumerProducerThird party
Effects before remedy Effects after remedy
Market Failure
(S)MPC
(D)MPB
Q
P
Pp
Pq
Proposed Remedy - Tax
(S)MPC
(D)MPB
Q
P
Pp
Qp
(S)MSC
tax
Pso
Qso
Pt
Qt
(D)MSB
THANK YOUTHANK YOUTHANK YOUTHANK YOUTHANK YOUTHANK YOU
Thank you studentsThank you Mrs. Jorday
Sourceshttp://dukespace.lib.duke.edu/dspace/bitstream/10161/549/1/
MP_mbh15_a_200804.pdf
http://www.newscientist.com/article/dn14831
http://stats.oecd.org/glossary/detail.asp?ID=383
http://www.csrwire.com/PressRelease.php?id=1532
http://www.chicagoclimatex.com/