The Clean Air Act Amendments of 1990 aim to create a market in emissions of sulfur dioxide from power plants by distributing a fixed number of tradable pollution permits called “allowances,” and by providing for the auction of a small fraction of the total number of allowances. This article describes potential inefficiencies in this market and how an auction could enhance the market. It shows that the method by which allowances are “bundled together” for auction is an important efficiency‐related element of auction design. The article also examines the politics of auction design and how equity goals strongly shaped the design ultimately adopted by Congress. Finally, some implications are suggested for the role of policy analysis in the legislative process.
Two-wheeler vehicles in Delhi, India-roughly 70% of the total vehicle fleet-are responsible for a significant portion of the city's vehicle emissions and petroleum consumption. An inspection and maintenance (I/M) program that ensures vehicle emission control systems are well maintained can complement other emission reduction strategies. This paper presents the initial findings of extensive data collected on vehicle characteristics and emissions for two-wheeler vehicles operating in Delhi in a series of I/M camps conducted by the Society of Indian Automobile Manufacturers and various partners in late 1999.The analysis shows idle HC and CO emissions [measured in terms of parts per million (ppm) and volume % (vol %), respectively] in a slow declining trend with subsequent model years, reflecting tighter emission standards and more advanced emission technologies. The I/M benefits-3 vol % and 39% reduction in idle and mass CO, respectively; 40 vol % and 22% reduction in idle and mass HC, respectively; and a 10-20% increase in fuel efficiency-were higher than those reported in the literature. Although these benefits are substantial, any implementation strategy needs to consider cost-effectiveness. In the present study, only 10% of vehicles-contributing 22% of the total vehicle emissions-failed the idle CO standard. Fleet emissions data variability necessitates a large sample size to develop a baseline for the vehicle fleet, but a smaller, scientifically designed sample and better data collection quality could periodically track the benefits at future camps.
BACKGROUNDDelhi and other major Indian cities are among the most polluted cities in the world. Vehicles, which contributẽ 20% of total CO 2 emissions in India, are a major source of urban air pollution and its related health impacts. The annual averages of suspended PM concentrations in 1997 were recorded as 295 µg/m 3 in residential areas and 400 µg/m 3 in commercial areas. 1 They are higher than the Central Pollution Control Board limit of 150 µg/m 3 and much higher than the World Health Organization guidelines of 60-90 µg/m 3 . Two-wheeler vehicles, which account for ~70% of the total vehicle fleet, are responsible for a significant portion of the total vehicle emissions and petroleum consumption. It is estimated that, of the total annual vehicular emissions in Delhi, two-wheeler vehicles contribute 6% of the CO 2 , 27% of the CO, 21% of the PM, and 47% of the HC.
Many economic modelers believe that there is an “optimal economic path” for solving the climate problem that exists independent of human choices. This belief rests on the notion that Integrated Assessment Models can determine the path that “maximizes global welfare” and, in turn, this path should drive climate policy. This commentary focuses on an under‐appreciated problem with that belief. We argue that the existence of pervasive increasing returns to scale, network externalities, learning curves, spillovers, and other nonlinear effects puts the idea of a single optimal economic path at odds with our current understanding of the most important forces driving the development of real economic and technological systems. We further argue that this idea is detrimental to rigorous understanding of climate solutions.This article is categorized under:
Assessing Impacts of Climate Change > Scenario Development and Application
Climate Economics > Economics and Climate Change
Climate Economics > Economics of Mitigation
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