Description:
This working paper, created by Denny A. Ellerman of the Massachusetts Institute of Technology, explores the consequences of cap-and-trade policies, where the total air pollutant emissions of a whole set of polluters are limited, and they are allowed to trade among themselves for the right to pollute up to the cap. The paper focuses on whether these policies have been effective in addressing environmental problems. The article provides background on the policies of U.S. cap-and-trade programs and provides a policy analysis of the effectiveness of these programs.
