Lessons for Reducing Leakage to Uncovered Sources under the Clean Power Plan

Jun 11, 2016 | Dallas Burtraw, Karen L. Palmer, Anthony Paul, Hang Yin


Including both existing and new sources in the same trading program is the best way to address potential CO2 leakage to uncovered new sources under EPA’s Clean Power Plan. But allocating emissions allowances to create a production subsidy for existing sources is a second best approach to addressing leakage.