TRANSPORTATION GREENHOUSE GAS EMISSIONS TRADING

This paper discusses countermeasures for regulating transportation emissions in the United States. It explores four alternative approaches to carbon emissions trading: upstream trading, vehicle maker-based trading, an upstream/vehicle maker hybrid, and upstream trading combined with vehicle maker carbon efficiency standards. The authors note that, though emissions trading does not guarantee emissions reductions from transportation sources, it is superior to other approaches if it is designed correctly. It makes it more certain that overall emissions goals will be achieved and that the results will be cost effective. Of the four alternative approaches discusses, the authors favor an upstream trading policy.