The Cap and Trade Program
Trading Pollution Credits → |
In all states of America policies have been formulated to reduce the rate at which human activity is degrading the environment. The state of California has been on the front line for a long time in formulating environment related policies. This state has formed a number of policy borads meant to look into environmental matters. One of such boards is the California Air and Resource Board. The California Air Resources Board (CARB) initiated efforts towards reducing greenhouse gases (GHG) to lower levels that were experienced in the year 1990 by the 2020.  Considering the present rates of emissions, this would translate to a significant reduction of GHGs emission by 30%. The “cap and trade” program is geared towards achieving this noble goal by simply offering incentive to major emitters of GHGs (Air Resouces Board 2011).
Green house gasses are emitted by many sources, both point and non-point sources, with the large emitters being more responsible for their continued rise in the environment (Simon 15). Permits are issued to the polluting utilities by the state, at specified emission limits; the utilities comply to emit less than the outlined emission limits. In these regard, the large power plants, production industries and factories in California are the targets in this program, and financial incentives are offered to them in exchange for reducing the total emissions (Malone 4). These major polluters are also encouraged by the same strategy to participate in efforts aimed at mitigating climate change and global warming; particularly illustrated by the buying of carbon credits. The “cap and trade” program has entrenched in California’s AB 32; an environmental law on global warming. It further augments efforts of ensuring environmental quality within the state as outlined by California Environmental Quality Act (Ferrey 176).
Origin of the program
Global concerns about global warming and it’s predicted adverse environmental effects, particularly climate change, have continued to grow, subsequently leading to the generation of various environmental measures to mitigate against this global issue (Simon 12). The “cap and trade’ program arose out of this need and was geared towards significantly reducing GHGs emissions within the state. Attaining the set goal of reducing the emissions was considered alongside other measures including relying less on fossil fuels by adopting renewable energy, efficient use of energy, and use of low carbon fuels.
Lack of clear national goals on reducing GHGs emissions coupled with the rising concerns raised by environmental lobby groups, led CARB to come up with this program in conjunction with other states within the western climate initiative. What the lobby groups and other interest groups realized is that the rate at which environment was being degraded was alarming. It was predicted that global warmingРІР‚в„ўs adverse effects would adversely affect every sector of the economy and so it was felt that there was need to act. It is from this need that the California Air Resources board was formed.
GHGs Emission
The program works by offering financial incentive to the major pollutants within the state that comply in reducing their emissions to levels set by the state. These levels are set by the environmental authorities within the state as mandated by Environmental Quality Act. Anthropogenic sources of pollution are identified as both point and non point sources. The program aims to target the easily identifiable point sources outlined as the major production industries and power plants within the state. Non- point anthropogenic sources of greenhouse gases are significantly tougher to regulate, such as emissions from vehicles using fossil fuelsР’В (Simon 23).
The program cannot adequately respond to this challenge at the points of pollution, but can counter this at the factory level, by encouraging the oil processing industries to reduce carbon amounts in the fuels. Cap and trade program, encourages all efforts undertaken to reduce GHGs emission and measures geared towards mitigating global warming, and in this way significantly reduces emissions from human activitiesР’В (Runyon 2010). Both programs have been tested and proven to be effective in maintaining high quality of environment. The two serves their purpose by either deterring polluters through the reduction of human activities that are deemed to have unfavorable effects on the environment.
Advantage and Disadvantages of the program
“Cap and trade program” has the advantage of addressing the emission problems at the major points of pollution. Limits set by the state clearly mark the ceiling to which the major emitters can produce. Setting these limits also offers quantifiable targets that the emitters can strive to achieve (Ferrey 134). Offering financial incentives as reward of meeting the stipulated amounts adds to the motivation of the polluters to meet the targets.  In targeting the major polluters, the program ensures large amounts of emissions can be reduced; a significant factor towards arriving at the 1990 levels by 2020. In addition to these advantages, the program is backed by the environmental laws stipulated in AB 32, and penalties can be administered to those not complying with the set GHGs emission rates (Air Resouces Board 2011).
On the other hand, the program has its disadvantages. It does not set specific limits to the polluting companies and neither does the program describe strategies and plans that these polluters can apply in order to reduce emission of carbon dioxide and other GHGs. These decisions are left to the polluting companies. Another aspect on its disadvantages relates to trading of carbon credits which can be abused by these companies.
Future of the program
Under this program, California Air Resource Board has projected GHGs emissions to drop by a margin of 80% by the year 2050 (AirResoucesBoard). It does not only set out the state’s dreams of achieving a higher quality of environment for its residents but also sets out the path that can be adopted by other states. In spite of its ideal goals the program faces challenges that should be addressed first before its full adoption and operation within the state. Regulators of air quality need to “properly consider alternatives” of the programs to ensure it can operate in the current and future circumstances (Runyon 2010). CARB can ensure it works by “conducting further review before implementing the plan”, which does offer a lot in the fight against global warming and climate change (Dearen 2011). Without addressing these problems, especially the possibility of abuse, this vital program would in essence be obsolete, in spite of its upper hand in reducing GHGs emissions.
Comparisons with other programs
Other programs with the same aim of reducing GHGs emission exist including the Western Climate Initiative (WCI) and the Regional Green House Gas Initiative (RGGI). These two programs are driven by regional concerns on GHGs emissions. The cap and trade program operates within the state of California, while the other initiatives outline these efforts over a number of states. The RGGI initiative works by “having each state set its own independent regulations” (Runyon 2010). These regulations have to be based on the “RGGI model rule”; this way ensures collective responsibility to these efforts. WCI also ensures aggregation of measures of reducing GHGs emission measures in the involved states, by developing market based approaches in various sectors projected to have significant impact in reducing these emissions. In achieving this goal, WCI and RGGI involve a wider consultations and participation across borders at levels higher than the cap and trade program.
Potential problems
Productivity and environmental quality are inversely related. It is always certain that if economic productivity goes up, then certainly the quality of environment gets negatively affected. If any measures meant to control, environmental degradation are toР’В be introduced, it then means that companies, big or small, have to cut down on production. It is this fact that poses lots of challenges to any policy meant to improve environmental quality. Possibility of being abused by the polluting companies however, makes the Cap and trade program require further reviewing to avoid these unethical practices. Companies can buy acquire the permits from the state and then purchase carbon credits from other projects that are located elsewhere within the stateР’В (Runyon 2010). This would lead to continued pollution by the industries and companies with the pretext of having these amounts of GHGs offset by their trading in carbon credits.
Human populations living around these companies, who are mainly composed of the poor class, will be subjected to a poor quality of environment from the emitted pollutionР’В (Dearen 2011). Investing in mitigation measures and projects located elsewhere only serves to further deny these people a better quality of life. In addition to this type of abuse, the program is also perceived by many as giving leeway and unlimited freedom to the polluting companies to continue with their operations and harmful emissions of GHGs as long as they pay taxes to the government. The bottom line here is that, there will be unethical issues that will arise. Big companies may take advantage of the situation while those living near these companies may have to be affected by having to dwell in polluted environment.
![]() |
David H.
New York, NY
|
|
I want to thank each writer who participated in helping with my large project. I know they spent a lot of energy turning out an admirable product, and I feel good for having hired them to take on this important project. EssaysEmpire.com is reputed as the best writing company on the Internet. Now, I know first hand, that you live up to that reputation. I could not have asked for a better deal. |
![]() |
Fred H.
Berkeley, CA
|
|
Thank you for doing what you do. You helped a lot of my friends, and now you have helped me. You provide a valuable service to students who need to get over writing hurdles. |
![]() |
Steve P.
Portland, OR
|
|
I am beginning to understand why your writing service was recommended to me so highly. Everything you do is a cut above your competition. You’re really great! |
![]() |
Emily H.
Norman, OK
|
|
My writer revealed to me that when he isn’t working for you, he is teaching at a major university. He also told me that a lot of the other writers who work for you are professors. That is impressive! No wonder I got an A+ on my paper! |
![]() |
Carolyn C.
Norman, OK
|
|
My paper was completed 3 days earlier than I had requested it. It needed no revisions and was much better than I had imagined. Thanks, EssaysEmpire.com! |
![]() |
Beverly S.
Cambridge, MA
|
|
I appreciate the help your wring service gave me with my biology paper. I have never cared much for biology. It is a tough subject for me to grasp. This is why I needed so much help with my paper. The writer absolutely understood the whole topic and turned out work that would have made anyone proud. Thanks a million for the great paper. |
![]() |
Billie N.
Atlanta, GA
|
|
EssaysEmpire.com is the only writing company that I can trust with my important writing projects. I have learned that I can count on your quality and ability without fail. Thank you, EssaysEmpire.com, for only hiring the best writers. I wouldn’t dream of using any other writing service. |
![]() |
Anne A.
Cambridge, MA
|
|
You dudes are awesome! Wow! I can’t believe I got an A+ on my paper! At best, I expected a B or C! |
![]() |
Judy C.
Bolingbrook, IL
|
|
I have used EssaysEmpire.com for two years now, and I wouldn’t even consider trying another writing service. I am convinced that there is no other service as good as EssaysEmpire.com, and I only want to work with the best. EssaysEmpire.com has given me well written papers that have come in well before their deadlines, every time. I am happy with EssaysEmpire.com and commit to sticking with them. |
![]() |
Sylvia S.
Ardmore, OK
|
|
Dear EssaysEmpire.com, Over the last couple of years, I have used your writing service for a total of five times. I have never had the same writer twice, but I have had excellent results with the writers who were assigned to my projects. I could easily recommend you guys. You’re the greatest! |
![]() |
Nancy B.
Lawrence, KS
|
|
I accidentally read the wrong chapters for my history assignment. Therefore, when it came down to the wire and I needed to hand in my history paper, I had to reach out for help very quickly. Your writers were able to put something together for me so fast! I couldn’t believe it! I handed the paper in and got a very high score on it. I was stunned! Thank you so much for your help! |
![]() |
Philipa W.
Rome, ITALY
|
|
The paper that your writers did for me on the topic of, The Psychological Effects of Fluorescent Lighting in the Workplace,” was right on the money! They included my long list of customizations and did not charge extra for them. The formatting was just right. There were no grammatical errors. The length was what it was supposed to be. I am so happy that I chose to let the EssaysEmpire.com writers take care of my paper for me. I will choose this writing service again without hesitation. |
![]() |
Alexandra Z.
Dallas, TX
|
|
I am sitting here reading over what your writing service offers and I just realized that you are the only one that offers free rewrites and full guarantees on your work. This tells me that you are an honest company that I want to do business with. |
![]() |
Royce B.
Dallas, TX
|
|
It is so refreshing to work with a writing service as professional as EssaysEmpire.com. Everything from your website, to your customer service workers to the writing itself, is top rate. I recommend you highly to anyone who will listen. |
![]() |
Ramona R.
Sparks, NV
|
|
Thank you for doing such stellar work on my paper. How anyone could write a paper this well on a subject this boring, is beyond me. When I tried to write it myself, I thought it would have put my professor to sleep! Your writers made it sound so interesting! I really appreciate that. Thanks a million! |
![]() |
Mark M.
Cambridge, MA
|
|
The paper I ordered from EssaysEmpire.com is incomparable! Thanks for doing such stellar work. I have recommended your services to a few other folks who plan to try you out soon. EssaysEmpire.com gets my vote for best writing service every time. |
![]() |
Jennifer C.
Sulphur, LA
|
|
Your writer did a great job on my history paper. I didn’t have to lift a finger, yet I received an A+. I read the paper and felt like I learned an entire semester’s worth of information. That’s how good it was! |
![]() |
John G.
Erie, PA
|
|
Thanks goes out to the writers who presented me with the best paper I have ever turned in. My professor was so impressed with it that he took excerpts from it to put in his class handouts on how to write the perfect paper. EssaysEmpire.com, you made me one proud student today! |
![]() |
Rob B.
Tulsa, OK
|
|
I needed APA formatting, EssaysEmpire.com’s writers gave me APA formatting. I needed 2000 words. EssaysEmpire.com’s writers gave me 2000 words. I needed an A+ on my paper to bring up my GPA. EssaysEmpire.com gave me a paper that got an A+. I am a happy person, thanks to EssaysEmpire.com! |
![]() |
Doreen A.
Malibu, CA
|
|
Due to a family emergency, I was unable to complete a very important paper. Thanks to EssaysEmpire.com, I was able to hand in a well written paper and not sacrifice my grade. I will be forever grateful to your writing service for providing such outstanding work. Thank you so much. |