Entire Book - Southwest Consortium for Environmental Research ...
Entire Book - Southwest Consortium for Environmental Research ...
Entire Book - Southwest Consortium for Environmental Research ...
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Introduction<br />
EPE generated emission credits <strong>for</strong> use at Newman Station by<br />
replacing 20 traditional brick kilns with Marquez kilns. Each<br />
kiln converted resulted in 3.3 tons of NO x allowances per year.<br />
EPE’s kiln conversion program represents the first time emission<br />
credits generated in Mexico have been used to meet U.S. emissions<br />
standards. As such, it illustrates the potential of transborder<br />
emissions trading as a policy tool.<br />
1 This section is based on El Paso Electric 2003.<br />
2 EPE advocated aggressively <strong>for</strong> statutory and regulatory changes, which culminated<br />
in the passage of 30 TAC § 101.337. This lobbying strategy was an<br />
integral part of EPE’s strategy <strong>for</strong> emissions targets.<br />
Air quality standards can be achieved more efficiently when emissions<br />
trading is possible, as these examples show. The efficiency gain<br />
from trading, illustrated by the first example, represents a gain to<br />
society. Presumably some of the additional profits resulting from<br />
emissions trading will be retained to finance business expansion,<br />
thereby creating jobs. Some of the profits will be passed on to the<br />
owners, who will use the proceeds to support their families, and<br />
some of the profits will be taxed and can be used to support socially<br />
desirable government programs. 5<br />
COMPLEXITIES OF THE REAL WORLD<br />
The a<strong>for</strong>ementioned example illustrates the basic benefits from<br />
emissions trading, but glosses over many real-world considerations,<br />
some of which are unique to a binational setting. The following are<br />
among the issues that need to be addressed:<br />
• While U.S. and Mexican air quality standards are similar, they<br />
are not identical. Where standards are in conflict, which standard<br />
should be used?<br />
• Who will administer the program? Which country will take<br />
responsibility <strong>for</strong> auditing and en<strong>for</strong>cing standards?<br />
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