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118
5.5. Discussion
This research examines the fixed-effects of emissions trading on per capita
emissions from point sources in California in the 1990’s. The OLS regression results
fail to reject the null hypothesis that using CAT, compared with using CAC, has no
significantly different effects on emissions of both NOx and SO2 from point sources at
the county level in California during 1990’s. While the models presented in this
research are not perfect, this research implies that CAT might not be more or less
effective than CAC in terms of reducing per capita emission levels. Stated differently,
emissions trading has helped SCAQMD reduced emissions of NOx and SO2 from
point sources at the same level of effectiveness of CAC.
One of the major findings is that per capita income is significantly related to
per capita emission level of both NOx and SO2 from point sources. Per capita income
has a negative relationship with per capita emission level. Do these results suggest that
economic factor is more important than regulatory factors in emission reduction?
Based on the results in this research, it seems that per-capita emission reduction level
has been primarily driven by income growth rather than difference in policy
instruments.
However, one has to be cautious when accepting the argument above. Firstly,
the linear assumption about the relationship between per capita emission level and per
capita income level is still in debate, and any attempt to link it to a casual relationship
need more supports. While a simplified linear model is developed in this research, it is
still incomplete. Since these models are derived from the environmental Kuznets
Curve (EKC), it has to face the criticisms to the robustness of EKC model. For
Object Description
| Title | Processes, effects, and the implementation of market-based environmental policy: southern California's experiences with emissions trading |
| Author | Zhan, Xueyong |
| Author email | xzhan@usc.edu; xueyongzhan@gmail.com |
| Degree | Doctor of Philosophy |
| Document type | Dissertation |
| Degree program | Public Administration |
| School | School of Policy, Planning, and Development |
| Date defended/completed | 2008-07-01 |
| Date submitted | 2008 |
| Restricted until | Unrestricted |
| Date published | 2008-10-30 |
| Advisor (committee chair) | Tang, Shui-Yan |
| Advisor (committee member) |
Mazmanian, Daniel A. Henry, Ronald |
| Abstract | This research provides a positive explanation of the implementation processes and effects of market-based environmental policy by conducting a case study on RECLAIM (Regional Clean Air Incentives Market), the first regional emission permits trading program that has been implemented by South Coast Air Quality Management District (SCAQMD) to address air pollution problems in the Los Angeles air basin since 1994.; Firstly, I developed a game theoretic model of environmental policy implementation. This model integrates theories of administrative rulemaking, policy implementation, institutional rational choice and transaction cost politics. I argue that administrative agency tries to minimize political transaction costs of policy implementation when writing rules.; Based on the formal model, I conducted a quantitative analysis to examine the interactions between SCAQMD and its key stakeholders, such as federal, state and local governments, businesses, and environmental NGOs, during the rulemaking of RECLAIM. I found that SCAQMD is more likely to adopt rule changes suggested by state and federal environmental agencies. This research identifies the dominant role of organized interest groups, the existence of interagency lobbying, and the lack of citizen control over the rulemaking of RECLAIM. Furthermore, I conducted an evaluation of the rules governing the RECLAIM program, and I identify the major distortions of the RECLAIM rules in comparison with an ideal cap-and-trade emissions trading market. Also, I used OLS regression to examine the effects of policy difference on emission level in California between 1990 and 1999. This evaluation fails to reject the null hypothesis that using cap-and-trade (CAT) compared with using command-and-control (CAC) has no different effects on emission of both NOx and SO2 from point sources at the county level in California in the 1990's.; In summary, this research finds that the implementation of emissions trading is political, and interest group politics may distort the regulatory design and implementation of an emissions trading program. While cap-and-trade is promising to better protect our environment and natural resources, its implementation is conditioned by many political and administrative factors. Inadequate rules may come as the results of political compromises, and they may impact the functioning of an emissions trading system. |
| Keyword | emissions trading; rulemaking; RECLAIM; implementation; environmental governance |
| Geographic subject (city or populated place) | Los Angeles |
| Geographic subject (state) | California |
| Coverage date | 1990/2000 |
| Language | English |
| Part of collection | University of Southern California dissertations and theses |
| Publisher (of the original version) | University of Southern California |
| Place of publication (of the original version) | Los Angeles, California |
| Publisher (of the digital version) | University of Southern California. Libraries |
| Provenance | Electronically uploaded by the author |
| Type | texts |
| Legacy record ID | usctheses-m1719 |
| Contributing entity | University of Southern California |
| Rights | Zhan, Xueyong |
| Repository name | Libraries, University of Southern California |
| Repository address | Los Angeles, California |
| Repository email | cisadmin@lib.usc.edu |
| Filename | etd-Zhan-2335 |
| Archival file | uscthesesreloadpub_Volume44/etd-Zhan-2335.pdf |
Description
| Title | Page 129 |
| Contributing entity | University of Southern California |
| Repository email | cisadmin@lib.usc.edu |
| Full text | 118 5.5. Discussion This research examines the fixed-effects of emissions trading on per capita emissions from point sources in California in the 1990’s. The OLS regression results fail to reject the null hypothesis that using CAT, compared with using CAC, has no significantly different effects on emissions of both NOx and SO2 from point sources at the county level in California during 1990’s. While the models presented in this research are not perfect, this research implies that CAT might not be more or less effective than CAC in terms of reducing per capita emission levels. Stated differently, emissions trading has helped SCAQMD reduced emissions of NOx and SO2 from point sources at the same level of effectiveness of CAC. One of the major findings is that per capita income is significantly related to per capita emission level of both NOx and SO2 from point sources. Per capita income has a negative relationship with per capita emission level. Do these results suggest that economic factor is more important than regulatory factors in emission reduction? Based on the results in this research, it seems that per-capita emission reduction level has been primarily driven by income growth rather than difference in policy instruments. However, one has to be cautious when accepting the argument above. Firstly, the linear assumption about the relationship between per capita emission level and per capita income level is still in debate, and any attempt to link it to a casual relationship need more supports. While a simplified linear model is developed in this research, it is still incomplete. Since these models are derived from the environmental Kuznets Curve (EKC), it has to face the criticisms to the robustness of EKC model. For |
