What Should California Hope to Achieve from AB32? Challenges to Implementing a State-Level Greenhouse Gas (GHG) Emissions Cap

Since January 1, 2013 California has had a cap on total greenhouse gas emissions (GHG) from electricity consumed in California and the emissions of large industrial firms.   In 2015, the cap will expand to include GHG emissions from transportation fuels and natural gas consumption.  This talk will describe the challenges of implementing a state-level cap and trade program for a stock global pollutant.   Major issues such as leakage, resource reshuffling, offsets, and linkage with other cap and trade markets will be discussed.   Lessons from other cap and trade markets for the design and performance of the California market will also be presented.  The talk will conclude with a discussion of how California might define success for its cap and trade market.

Speaker: Dr. Frank Wolak, Stanford