Abstract
The use of emissions trading (cap and trade) is gaining worldwide recognition as an extremely effective policy tool. More than 4 million tons of SO2 have been reduced annually from sources participating in the US SO2 emissions trading program. Ambient SO2 levels and sulfate deposition have decreased by over 25 percent in the most sensitive ecosystems. By harnessing market forces, the program has led to significant cost savings. This paper discusses the results of the US SO2 emissions trading program and emerging efforts in the US and around the world to use emissions trading.
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