New Discussion Paper Examines the SO2 Allowance Trading System

In a new discussion paper, "The SO2 Allowance Trading System: The Ironic History of a Grand Policy Experiment," authors Richard Schmalensee, Massachusetts Institute of Technology, and Robert N. Stavins, director of the Harvard Environmental Economics Program, explore four ironic outcomes associated with the otherwise very successful sulfur-dioxide cap-and-trade system created by the Clean Air Act Amendments of 1990.