Chicago Johannesburg London Portland Princeton San Francisco Stamford Tokyo Toronto WashingtonBoston Meeting: Cap-and-trade system for CO2 in the US
Tuesday, September 15, 2009 - 6:15pm
3rd Floor of the Tennis & Racquet Club, 939 Boylston Street [call 617-536-4630 for directions]
John E. Parsons is a Senior Lecturer at the MIT Sloan School of Management and Executive Director of MIT’s Center for Energy and Environmental Policy Research and MIT’s Joint Program on the Science and Policy of Global Change.
Abstract, as supplied by John:
Congress is currently considering legislation to create a cap-and-trade system for CO2 in the US. Europe has had a carbon market since 2005. The US has nearly two decades of experience with an SO2 market. I will discuss the elements of carbon market design at issue in the current congressional debate—who should be allowed to trade allowances, how price movements should be managed, and what agencies should have authority over trading and with what powers for intervention—with special attention to the recent experience with the CO2 market in Europe and the SO2 market in the US. I will also discuss what companies are exposed to carbon price risk and how this is shaped by the prospective terms of the legislation.
Abstract, as supplied by John:
Congress is currently considering legislation to create a cap-and-trade system for CO2 in the US. Europe has had a carbon market since 2005. The US has nearly two decades of experience with an SO2 market. I will discuss the elements of carbon market design at issue in the current congressional debate—who should be allowed to trade allowances, how price movements should be managed, and what agencies should have authority over trading and with what powers for intervention—with special attention to the recent experience with the CO2 market in Europe and the SO2 market in the US. I will also discuss what companies are exposed to carbon price risk and how this is shaped by the prospective terms of the legislation.
