Design, Performance, and Interstate Collaboration: Insights from the Regional Greenhouse Gas Initiative

Regional & Federal Studies. 22(4):475-498.

Posted: 6 Nov 2011 Last revised: 20 Jan 2015

See all articles by Brendan Kretzschmar

Brendan Kretzschmar

Independent

Andrew B. Whitford

University of Georgia - Department of Public Administration and Policy

Date Written: 2012

Abstract

Given pressure to act on climate change, nations have started using market-based approaches for reducing greenhouse gas (GHG) emissions. Cap and trade systems for reducing GHG are strongly debated. Policy designers must allocate emissions allowances effectively to ensure successful cap and trade systems; for example, some argue that the European Union’s Emissions Trading Scheme has underperformed due to poor allowance distribution. We apply insights from auction design theory to analyze the performance of the Regional Greenhouse Gas Initiative (RGGI) emissions allowance auctions, and show how RGGI could serve as a model for a national cap and trade system for the United States.

Suggested Citation

Kretzschmar, Brendan and Whitford, Andrew B., Design, Performance, and Interstate Collaboration: Insights from the Regional Greenhouse Gas Initiative (2012). Regional & Federal Studies. 22(4):475-498. , Available at SSRN: https://ssrn.com/abstract=1954876 or http://dx.doi.org/10.2139/ssrn.1954876

Brendan Kretzschmar

Independent ( email )

Andrew B. Whitford (Contact Author)

University of Georgia - Department of Public Administration and Policy ( email )

Athens, GA 30602
United States
706-542-2898 (Phone)
706-583-0610 (Fax)

HOME PAGE: http://andrewwhitford.com

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