Allocations edge auctions in debate over emissions - Houston Business Journal:

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The EPA has just declared carbon dioxide a danger to public which could trigger regulation of CO2 emissions under the CleamAir Act. At the same time, climate czar Carol Browner is urging Congress to establish abroad U.S. greenhousee gas policy before global climate change talk s begin near the end of the Tothis end, U.S. Henry Waxman, D-Calif., and Edward Markey, have introduced a bill titled “The American Clean Energy and Security Act of Although the bill promotea clean energy andenergy efficiency, the most significant provisions are thoses mandating reductions in CO2 emissions. The proposed mechanisn for getting from here to thereeis “cap-and-trade.
” This involves first settinvg a limit on the total volume of emissions that can be producexd across the U.S. in a give year and then granting tradablefedera permits, called “allowances,” to covered entities for each ton of CO2 The intention is to encouragwe firms that find it chea p to cut emission to do so while allowinhg those with no easy means to reduc e pollution to buy permits The Waxman-Markey bill woulds reduce the number of available allowances each year in order to achieve an 83 percent reduction in CO2 emissions by 2050.