Anthony L. Joseph’s research while affiliated with New York State and other places

Ignoring SO2 and NOx externalities in electric utility resource decisionmaking—on the basis that the Clean Air Act amendments of 1990 have imposed a national cap on utility SO2 emissions and required NOx emission offsets in the Northeast—is a myopic policy. These externalities should be considered in future electricity resource decisions.

This volume has primarily focused on JI as a cooperative implementation of greenhouse gas (GHG) reduction policies and measures, whereby a party in one country assists a party in another country to achieve an underlying GHG reduction objective. JI projects will only come about if individual countries require mandatory reductions in GHGs by their industries as a result of international agreements. However, opportunities for JI projects could arise outside of an international agreement on GHG reductions, for example as a result of actions taken by individual states in the USA under their environmental and energy regulations. It is likely that potential sellers of GHG reduction credits in other countries are unaware of JI opportunities which may arise from actions of individual states within the USA. An understanding of such opportunities will enhance the development of a market for JI.

The recent amendments to the Clean Air Act will drastically reduce emissions of criteria pollutants regulated under National Ambient Air Quality Standards (SOxNOx, CO, Ozone, PM & Lead). As of yet, emissions of CO2, considered to be the major cause of global warming problem, are not covered under the Clean Air Act, thus are not required to be controlled. However, given that international pressure is mounting to limit emissions of CO2, their control has become the focus of attention at both national and state levels.

Top-down approches to a carbon tax will generate heavy excess revenues, causing administrative and equity problems. A better approach — which has been espoused by Vice President Gore — could come through a targeted trust fund appproach.