POLICY OPTIONS FOR THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY TO CREATE A MARKET-BASED SYSTEM TO REGULATE GREENHOUSE GASES UNDER THE CLEAN AIR ACT
Abstract
Although the United States Congress has not enacted legislation to control greenhouse
gas (GHG) emissions, the United States Environmental Protection Agency (EPA) has authority
under the existing Clean Air Act (CAA) to promulgate regulations on GHGs. This authority
stems from the US Supreme Court decision in Massachusetts v EPA (2007) and the EPA’s
endangerment finding for GHGs in 2009. EPA’s regulations of GHGs could take the form
of either traditional technology-based/design standards, or they could be in the form
of cost-effective market-based economic incentives. This paper evaluates the feasibility
of creating a market-based system, in the form of cap and trade, either under sections
108-110, National Ambient Air Quality Standards, or section 111, New Source Performance
Standards, of the Clean Air Act.
This paper compares the desirability of these two options for a market-based system
to regulated GHGs based on the criteria of: legal authority, economic efficiency and
environmental effectiveness. While the EPA has the legal authority to create a market-based
system for GHGs under either part of the CAA, this comparison supports NSPS as being
more preferable than NAAQS. This is because: the EPA has already committed to regulating
GHGS under NSPS; NSPS clearly allows market-based incentives; NSPS offers greater
flexibility and associated cost-effectiveness; and NSPS avoids the contentious task
of setting an ambient standard for GHGs that could prove either unattainable or superfluous.
Type
Master's projectSubject
Climate ChangeGreenhouse Gas Mitigation
Clean Air Act
Cap and Trade
Market-Based Incentive Program
New Source Performance Standards
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https://hdl.handle.net/10161/5252Citation
Zoller, Lilly (2012). POLICY OPTIONS FOR THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY TO CREATE A MARKET-BASED
SYSTEM TO REGULATE GREENHOUSE GASES UNDER THE CLEAN AIR ACT. Master's project, Duke University. Retrieved from https://hdl.handle.net/10161/5252.Collections
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