February 2002
A. Denny Ellerman, February 2002
This paper evaluates President Bush\'s recent proposal to reduce the cap on total SO2emissions using a model of emissions banking that fits the experience so far under Title IV. It provides a brief introduction to emissions banking and reports results concerning the effect of a the proposed reduction of the cap on emissions, abatement costs, and the value of the existing SO2 allowance endowment.