This working paper describes the rationale for nutrient trading in the Chesapeake Bay region and estimates the economic benefits, including potential benefits to the agriculture, wastewater, and stormwater sectors.
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.