Environmental Economics

Emissions and Effluent Trading, Credits, and Offsets

NERA has extensive experience in air emissions and effluent trading, credit, and offset programs. We have participated actively in the development and evaluation of virtually all the major air emissions trading programs and proposals, including:

• Acid Rain Trading Program for the US;
• NOx Budget Trading Program in the Northeast US;
• Regional Clean Air Incentives Market (RECLAIM) in California’s South Coast Air Basin;
• Regional Greenhouse Gas Initiative (RGGI) in the Northeast US;
• Clean Air Interstate Rule (CAIR) limiting SO2 and NOX emissions in the US;
• Cross State Air Pollution Rule (CSAPR) in the US;
• California's AB 32 climate bill;
• Averaging, banking, and trading programs for mobile sources in the US; and
• Trading programs proposals in Canada and Europe.

NERA personnel have served on advisory committees developing programs and have developed deep expertise on design and other elements that are crucial for successful implementation.

With our experience in developing cost-benefit and cost-effectiveness assessments and our expertise in designing and evaluating emissions and effluent programs, NERA can help governments address air quality issues efficiently and effectively through market-based policies. NERA experts can help companies analyze the cost-effectiveness of alternative proposals and allow them to provide inputs into the policy development process. NERA has applied a range of models and analytical tools in this area, including sector-specific abatement cost models and allowance price forecasting models.