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Introduction (PM 10 and PM 2.5 )—and volatile organic compounds (VOC). In 2003, EPA (2003b) reported that 70 market-based programs existed in 26 states. At least 17 states have emissions trading programs, including three located on the border (Texas, Arizona, and California). Emissions trading has also been used successfully to reduce acid rain in the eastern United States (see box, page 12). A number of international emissions trading programs aimed at coordinating environmental policy between developed and developing countries already exist, most famously the United Nations Convention on Climate Change (UNCCC). The Kyoto Accord, reached under UNCCC, allows for joint implementation (JI), under which reductions in greenhouse gases in developing countries can be used as offsets for greenhouse gases emitted in developed countries. Parties to the protocol recognize that JIs allow developed countries to finance environmentally beneficial projects in developing countries, thereby achieving global greenhouse gas emission standards more efficiently. In essence, JI projects allow the “low-hanging fruit” in developing countries to be picked first, while the cost is borne by developed countries. Given the limited resources available in developing countries, these projects might not be undertaken in the absence of JIs. This illustrates the general principal that in coordination of environmental policy between developed and less-developed economies, emissions trading has the additional benefit of allowing the developed country to provide additional resources to the developing country, in effect, paying for the enforcement of agreed-upon environmental standards without regard to where the remediation is undertaken. That is, emissions trading can facilitate the transfers of resources to places where those resources can be used most efficiently. Citizens of the developing country obtain funds to finance environmental remediation and benefit from lower-cost abatement. Both countries benefit from improved environmental quality. This is obviously an advantage for the border, where resources are especially limited. Some object to emissions trading on the grounds that it is unethical. Commentators who hold this point of view argue that it is unethical to allow a source to pollute to the detriment of the collective environment just because the source has purchased a permit. 2 These commentators argue that this is an immoral usurpation of a 11
Improving Transboundary Air Quality with Binational Emission Reduction Credit Trading Acid Rain and SO 2 Trading The largest, most ambitious, and best studied 1 emissions trading scheme is the U.S. Acid Rain Program. Acid rain is a major problem in the eastern United States. It has been blamed for declines in eastern forests, acidification of lakes and streams (resulting in fish deaths), and damage to structures and buildings. Controlling sulfur dioxide (SO 2 ) emissions is an important step in reducing acid rain because SO 2 is a precursor for it. A major source of SO 2 emissions is power plants that burn coal and petroleum. In an effort to address the acid rain problem, the U.S. Environmental Protection Agency (EPA) established a cap-andtrade program under which a fixed number of “allowances” are distributed to power plants. Each allowance represents permission to emit one ton of SO 2 . A power plant can then sell its allowances to another power plant—or anyone else, including a speculator—provided that it surrenders to the EPA sufficient allowances to cover its emissions. Power plants facing high incremental abatement costs can avoid incurring those costs by purchasing additional allowances. Power plants are also allowed to bank unused allowances. Phase 1 of the program required that 263 of the largest SO 2 sources, located primarily in the eastern and midwestern United States, participate. Other sources could participate on a voluntary basis. The total SO 2 cap in 1995, the first year of the program, was 8.7 million tons. This cap was slowly reduced until by 1999, at the end of Phase 1, the cap was 7.0 million tons. Phase 2 extends the program to all but the smallest existing power plants and to all new power plants. By 2010, the aggregate cap is to be reduced to 8.95 million tons of SO 2 , approximately half the 1980 emissions. The program has been successful. By 2001, there had been more than 4,000 trades (EPA 2002a). The flexibility provided by the program enabled power plants to pursue a variety of compliance options. Sources met their SO 2 reduction obligations by 12
Page 1 and 2: THE SCERP MISSION The Southwest Con
Page 3 and 4: Authors SCERP Monograph Series, no.
Page 5 and 6: Published by San Diego State Univer
Page 8: Contents Foreword v Prefacio ix Pre
Page 11 and 12: Improving Transboundary Air Quality
Page 14 and 15: Prefacio “Si vale la pena tener u
Page 16: Prefacio pudiera ser difícil, cost
Page 22 and 23: I Introduction THE VIEW FROM EL PAS
Page 24 and 25: Introduction Resource Conservation
Page 26 and 27: Introduction approaches to correcti
Page 28 and 29: Introduction into the environment.
Page 30 and 31: Introduction maquiladoras, to hire
Page 34 and 35: Introduction installing scrubbers,
Page 36 and 37: Introduction The existence of emiss
Page 38 and 39: Introduction would require an initi
Page 40 and 41: Introduction EPE generated emission
Page 42 and 43: OVERVIEW Introduction This volume i
Page 44 and 45: II A Snapshot of the Border THE MEA
Page 46 and 47: A Snapshot of the Border states—B
Page 48 and 49: A Snapshot of the Border Table 1. U
Page 50 and 51: A Snapshot of the Border Interestin
Page 52 and 53: Table 3. Percentage Change in Borde
Page 54 and 55: A Snapshot of the Border Another so
Page 56 and 57: A Snapshot of the Border plants tha
Page 58 and 59: A Snapshot of the Border Air Qualit
Page 60 and 61: A Snapshot of the Border quality. T
Page 62 and 63: A Snapshot of the Border million in
Page 64: A Snapshot of the Border THE ENVIRO
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Improving Transboundary Air Quality
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Appendix A Excerpts from the Border
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Environmental Regulation and the Bo
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Environmental Regulation and the Bo
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Nearly 90% think Mexican environmen
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Appendix B Survey Instrument Encues
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Manquiladora Attitudes 13) ¿Tu com
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Manquiladora Attitudes 22)¿Habías
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V Designing a Transborder Trading S
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Designing a Transborder Trading Sch
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abatement activities, 4, 6-7, 16, 1
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automobile and truck, 47 banking, 2
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nitrogen oxide (NO x), 9-10, 16-18,
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