The U.S. Clean Air Act Amendments of 1990 initiated the first large experiment in the use of market-based regulation to control environmental problems with the introduction of an emissions tradingprogram for sulfur dioxide emissions. Later that decade the second large trading program began for control of nitrogen oxide emissions. Although these programs are widely viewed as successful, their development and the emergence of associated environmental markets took various turns that provide lessons for the development of new markets, including markets for greenhouse gas emissions. This paperreviews the history of these programs and provides a glimpse of their future given the introduction of new regulations affecting multiple pollutants and given the expected implementation of climate policy.
U.S. Emissions Trading Markets for SO2 and NOx
Working Paper by Dallas Burtraw and Sarah Jo Szambelan — 1 minute read — Oct. 15, 2009
DownloadAuthors
Dallas Burtraw
Darius Gaskins Senior Fellow
Sarah Jo Szambelan
Related Content
Common Resources — Jul 20, 2015
What to Watch For in EPA’s Final Clean Power Plan: The Promises of Multi-State Compatibility
Later this summer, the US Environmental Protection Agency (EPA) will release its final Clean Power Plan, setting carbon emissions goals for existin...

Explainer — Mar 3, 2021
Federal Climate Policy 101: Reducing Emissions
An overview of climate policy tools available for federal emissions reduction efforts and the key criteria for evaluating climate policy.

Press Release — Mar 3, 2021
New Explainer Series Makes Federal Climate Policy Accessible
A new set of explainers, which detail federal climate policies across a range of sectors, presents comprehensive information about some of today’s most politically salient topics.