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Chapter 7

Information provided for informational purposes only Note: EPA no longer updates this information, but it may be useful for as a reference or resource.

Figures

  • Figure 7-1

  • Figure 7-2

  • Figure 7-3

  • Figure 7-4

  • Figure 7-5

  • Figure 7-6

  • Figure 7-7

  • Figure 7-8

  • Figure 7-9

    • 1. Introduction

  • Background
  • Trading/Incentives Workgroup Activities

    2. Policy Development and Documentation

  • Briefings on Market Systems
  • Policy and Discussion Papers
  • Key Points of the Policy Papers
  • First Emissions Market System Workshop
  • Second Emissions Market System Workshop
  • Key Policy Issues
  • Evaluation of Market System Types
  • Design Proposals for Large Stationary Sources of NOx Emissions
  • OTAG Cap-and-Trade Analyses
  • Findings From the OTAG Cap-and-Trade Analyses
  • Overall Emissions Reductions and Costs
  • Savings From Cap and Trade
  • Geographic Distribution of Emissions Reductions
  • Single Versus Multiple Trading Areas
  • Flexibility in Cap-and-Trade Options
  • Banking
  • Flow Control
  • Leakage

    3. Market System Types

  • Comparison of Market System Types
  • Context for System Comparisons
  • Budget Implications for Traditional Control Programs
  • Market System Types
  • Market Systems Without Emissions Caps
  • Market Systems With Emissions Caps

    4. Key Components of NOx Emissions Market System

  • Design Proposal for Participating Stationary Sources
  • Size Thresholds
  • Opt-Ins
  • Recommendations
  • Design Proposal for Emissions Assignments
  • Emissions Assignment Protocol
  • Market Systems Without Emissions Caps
  • Market Systems With Emissions Caps
  • Distinctions Between Systems
  • Adjustments to Emissions Assignments
  • Recommendations
  • Design Proposal for Emissions Banking
  • Context for Allowing Banking
  • Value of Emissions Banking
  • Potential Impacts of Emissions Banking
  • Design Considerations for Banking
  • Recommendations for Managing the Effects of Banking
  • Design Proposal for Emissions Currency
  • Common Currency for NOx Emissions Reductions
  • Benefits of a Common Currency
  • Challenges to Development and Use of a Common Currency
  • Complexity and Costs Associated With Different Currencies and Market-Based Systems
  • Recommendations
  • Design Proposal for Performance Accountability
  • Compliance Demonstration in Market-Based Systems
  • Compliance Demonstration Considerations
  • Data Elements Required for Demonstrating Compliance
  • Consequences for Noncompliance
  • Recommendations
  • Design Proposal for Inter-Sector Transactions
  • Context for Inter-Sector Transactions
  • Value of Inter-Sector Transactions
  • Considerations for Inter-Sector Transactions
  • Quantification
  • Compatible Air Quality Management Objectives
  • Reduction Schedule for Multiple Sectors
  • Implementing Inter-Sector Transactions
  • Recommendations
  • Design Proposal for Market System Performance Review
  • Aspects of System Performance
  • Evaluation Practices
  • Recommendations

    5. Area and Mobile Sources

  • Considerations Regarding Market Incentives for Area and Mobile Sources
  • Methodologies for Implementing Area and Mobile Source Emissions Reduction Strategies Through Trading
  • Trading Method No. 1—Credit Model
  • Trading Method No. 2—Allocation Model
  • Issues

    Appendix A

    Appendix B

    Appendix C

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