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State Reactions To The Trading Of Emissions Allowances Under Title Iv Of The Clean Air Act Amendments Of 1990, Deborah M. Mostaghel

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To cut down on the S02 emissions from coal-fired electric utilities, Title IV creates a two-pronged approach. First, it sets a national cap on emissions. Title IV allocates to each utility a number of pollution allowances to emit a certain amount of S02.11 The sum of all the allowances equals the nationwide cap. Second, Title IV recasts S02 as a commodity. If a utility does not need all of its allowances in a particular year, it may either trade them on a public exchange, or it may arrange private sales to a utility that needs more allowances to stay within …