Low Carbon Prices Don't Mean Cap-and-Trade Systems Are Failing

For those who think that low allowance prices mean that RGGI and the European Union Emissions Trading Scheme are failing, I recommend this post last week by my friend Rob Stavins. Money quote:

"RGGI may not be particularly relevant, but it is not thereby a flawed system; surely it is not a failure.  Rather, a great environmental success has been achieved by the “fortunate coincidence” of low natural gas prices, economic recession, and mild weather.  This is hardly something to be lamented…. The low allowance prices are evidence of a success outside of the RGGI market, not evidence of failure within the RGGI market."

My lawyer’s interpretation? If the point of “cap-and-trade” is to “cap” emissions, why is the system a failure if the cap is met through other causes? We may not have high prices leading to large pots of money to fund renewable energy, but emissions are below the cap.

 

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Foley Hoag LLP - Environmental Law | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×