When implemented properly, an early action component of a cap-and-trade program can reward early actors while preserving or enhancing the environmental outcomes of the cap-and-trade program. If designed and implemented poorly, however, early action credits can infl ate the emissions cap and reduce the overall environmental integrity of the program. This paper presents a range of options for addressing early reductions and discusses their implications.
All rights reserved. For quotes and references, please refer to suggested citation on the title page of the PDF document. You may reproduce summary information about this report, such as the title, author(s) and summary details, provided you include a link to the publication's landing page where users can download the PDF version and/or other documents. If you wish to use this report in any other manner, please contact us to request permission.