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OVERVIEW Introduction This volume is organized as follows. Chapter II provides a snapshot of the border, which is a complex social milieu. It is an area characterized by both poverty and rapid economic development and population growth. Complicating this is the relative position of the two sides of the border within their respective countries. The border is among the most impoverished areas in the United States and is eligible for help from state and federal governments. The border is also among the wealthiest regions of Mexico, which causes the Mexican government’s reluctance to provide resources for environmental problems there because other regions of Mexico have greater needs. Chapter III summarizes air quality issues facing the border. The air quality standards in Mexico and the United States are compared in detail. Developing an emissions trading program on the border will require cooperation among U.S. and Mexican officials. This cooperation will be facilitated if, as is currently the case, the air quality standards in the two countries are similar. Differences in enforcement efforts between the two countries are discussed. Chapter III also discusses border institutions dealing with the environment, including the North American Development Bank, the Border Environment Cooperation Commission, and the Commission on Environmental Cooperation. Chapter III addresses the attainment status of various airsheds along the border. PM 10 is identified as a major problem. The chapter ends with a brief history of cooperation on the border on environmental issues. Chapter IV presents the results of a survey of maquiladoras with regard to their understanding of environmental regulation and emissions trading. The main conclusion from this chapter is that large firms identify PM 10 as a significant problem; it follows that a trading program dealing with PM 10 may be possible, although PM 10 tends to be highly localized in its effects. Chapter V presents the major results of the monograph. The chapter opens with a discussion of main issues in the design of emissions reduction trading programs. Specific recommendations are made for how a transborder emission reduction credit trading program should be designed. Among these recommendations is a pro- 21
Improving Transboundary Air Quality with Binational Emission Reduction Credit Trading posal for the establishment of a baseline-and-trade program, with responsibility for certification and enforcement assigned to the home country of the emission purchaser. ENDNOTES 1 This is not to imply that there has been no progress toward developing binational institutions. Especially since the passage of the North American Free Trade Agreement (NAFTA), new institutions have been established to promote the exchange of information and for the coordination of environmental policy. One important recent effort in this regard has been the Border 2012 Program. This is a joint program of the U.S. Environmental Protection Agency (EPA) and Mexico’s Secretaría de Medio Ambiente y Recursos Naturales (SEMARNAT) and involves the cooperation of U.S. and Mexican governments, the 10 Mexican and U.S. border states, as well as U.S. tribal governments. Several working groups have been established under Border 2012, including a working group on air quality issues. The issue of transborder institutions will be addressed in more detail in Chapter III. 2 A version of this argument has also been applied to corrective taxes. 3 The example implicitly assumes that the only market failure is excessive air pollution. 4 The example ignores transaction costs, but these can easily be incorporated. Suppose that the cost of searching for a trading partner, negotiating the transaction, and enforcing the contract after the transaction amounts to $20,000, then the net gain from the trade will be $300,000 – $20,000 = $280,000. 22
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 32 and 33: Introduction (PM 10 and PM 2.5 )—
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 44 and 45: II A Snapshot of the Border THE MEA
Page 46 and 47: A Snapshot of the Border states—B
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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
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Page 64: A Snapshot of the Border THE ENVIRO
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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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Improving Transboundary Air Quality
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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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