WASHINGTON, DC—Resources for the Future (RFF)—the independent, nonprofit research institution based in DC—today posted a new blog: “Oregon Could Become Second in World to Implement Economy-Wide Carbon Pricing” by Research Associate Amelia Keyes. The central issue is the climate action bill proposed recently in the Oregon state legislature.
The author writes: “The centerpiece of the bill is the economy-wide cap-and-trade program that sets a maximum quantity of emissions from sources covered in the program and allows for flexible compliance among those sources through emissions allowance trading at a market-determined price. The bill sets a firm emissions reduction goal, draws out a framework for the cap-and-trade program, and directs the newly created Climate Policy Office to finalize the details and implement the program.”
The author also notes: “If it passes, Oregon will become the second jurisdiction in the world (following California) to implement comprehensive, economy-wide carbon pricing. This bill advances a model for states to develop carbon cap programs that can be customized to fit the local economy and work alongside existing climate policies.”
The author then lays out an overview of some key design features included in the bill, including:
- The cap
- The sectors covered
- Allocation of emissions allowances
- “Guardrails” for auction prices
- Investment of auction proceeds
- Linking with other cap-and-trade programs
And other important considerations.
Read the full blog post: “Oregon Could Become Second in World to Implement Economy-Wide Carbon Pricing.”
Resources for the Future (RFF) is an independent, nonprofit research institution in Washington, DC. Its mission is to improve environmental, energy, and natural resource decisions through impartial economic research and policy engagement. RFF is committed to being the most widely trusted source of research insights and policy solutions leading to a healthy environment and a thriving economy.
Unless otherwise stated, the views expressed here are those of the individual authors and may differ from those of other RFF experts, its officers, or its directors. RFF does not take positions on specific legislative proposals.