Revenue Investment of California’s GHG Emissions Trading Program

In anticipation of the California Air Resources Board (CARB)’s upcoming decision over a greenhouse gas emissions trading program, Next 10, a nonprofit nonpartisan research organization, commissioned five research papers from leading academic experts to address the multibillion dollar issue of how California should distribute greenhouse gas allowances and the resulting revenue.

RAEL Researcher Jamil Farbes and Lab Director Dan Kammen produced in this context a study entitled "Government Investment in a Clean Energy Future".

Key findings include:

  • A clear priority is for government investment to facilitate the capture of low cost greenhouse gas emission reductions that the emissions trading program alone would not achieve. This enhances cost effectiveness by overcoming market barriers inhibiting the transition to low carbon economy technologies that exist even after a price on carbon is established.

  • In light of the above, and AB 32’s mandate to ensure fairness in implementation and environmental justice in particular and the need for California to adapt to climate change to the extent some warming is inevitable, research identifies a number of priority investments:

  1. Research, development and demonstration funding to speed the invention and commercialization of new advanced technologies,
  2. Incentives to bolster the diffusion of existing improved technologies,
  3. Investments in communities burdened by high pollution levels and low income, to capture public health benefits there and to enhance the program’s fairness, and
  4. Adaptation to climate change recognizing that some global warming is inevitable.

News Coverage:

San Francisco Chronicle: Most in state found to support carbon-trading plan

E&E News Climate Wire: New Reports debate what to do with California's Cap and Trade Revenues

The Sacramento Bee: Report minimizes Fear on California climate Cap-and-Trade System

KQED Climate Watch: Poll: Californians still support Cap-and-Trade

Sacramento Business Journal: Voters favor Cap-and-Trade Program

Central Valley Business Times: Poll finds strong backing for proposed emission trading program

The Bay Citizen: Here Comes Cap and Trade, California Style

Sustainable Industries: Cap and Trade could be no big deal for California's Economy

PR Newswire

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