HKS Affiliated Authors


The SO2 Allowance Trading System: The Ironic History of a Grand Policy Experiment. Robert N. Stavins, Winter 2013, Paper. "Two decades have passed since the Clean Air Act Amendments of 1990 launched a grand experiment in market-based environmental policy: the SO2 cap-and-trade system. That system performed well but created four striking ironies: First, by creating this system to reduce SO2 emissions to curb acid rain, the government did the right thing for the wrong reason. Second, a substantial source of this system's cost-effectiveness was an unanticipated consequence of earlier railroad deregulation..." Link Verified October 12, 2014