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Environmental Law

2013

Notre Dame Law School

Green house gas

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How Did Rggi Do It? Political Economy And Emissions Auctions, Bruce R. Huber Jan 2013

How Did Rggi Do It? Political Economy And Emissions Auctions, Bruce R. Huber

Journal Articles

Among the major emissions trading schemes in operation around the world, the Regional Greenhouse Gas Initiative (RGGI) stands alone: this CO2 cap-and-trade program among nine northeastern states is the only such scheme to rely primarily on auctions to distribute emissions allowances. The standard practice - distributing allowances for free on the basis of historical emissions - elicits begrudging but politically crucial support from some regulated emitters. Like carbon taxation, allowance auctioning has long been considered economically superior to its alternatives but politically infeasible.

How did the RGGI states manage to defy conventional wisdom and institute a program so reliant …