Spillover benefits of carbon dioxide cap and trade: Evidence from the Toxics Release Inventory

C-Tier
Journal: Economic Inquiry
Year: 2024
Volume: 62
Issue: 1
Pages: 449-467

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Reducing greenhouse gas emissions is necessary to meet climate goals, but these emissions are not the only harmful bi‐products of fossil‐fuel combustion. This paper shows how a regional cap‐and‐trade program designed to regulate CO2 emissions affects the release of federally‐regulated toxins in the Toxics Release Inventory. We find that the program reduces toxic releases from coal‐fired electric plants by 78%, and that harmful metal releases (e.g., lead, mercury) have fallen by 54%. There is no evidence of spillovers into non‐adopting areas. This unintended beneficial effect of the carbon dioxide cap‐and‐trade policy provides compelling evidence of the co‐abatement of harmful compounds alongside greenhouse gas emissions.

Technical Details

RePEc Handle
repec:bla:ecinqu:v:62:y:2024:i:1:p:449-467
Journal Field
General
Author Count
2
Added to Database
2026-01-29