A comparison of cost-containment instruments for US carbon reduction policies

Thesis (S.M. in Technology and Policy)--Massachusetts Institute of Technology, Engineering Systems Division, Technology and Policy Program, 2008.Includes bibliographical references (p. 124-126).A cap-and-trade program, as is used in the European Trading Scheme, is currently the most widely discussed method in the US for reducing greenhouse gases. A basic cap-and-trade program operates by mandating a fixed level of emissions for a given period, issuing permits, and then allowing a market for those permits to develop. The resulting market price for emissions permits, and hence the economic impacts of the chosen policy, can only be estimated in advance with a high degree of uncertainty. Many of the current US cap-and-trade proposals contain provisions for cost-containment instruments which reduce the possible range of emissions prices. This paper analyzes the relative effectiveness of three such cost-containment instruments, including a safety valve, an intensity target, and banking and borrowing. The results presented rely on two computable general equilibrium models developed at the Massachusetts Institute of Technology, and show the predicted performance of these instruments under a simulated range of economic outcomes.by Lisa M. Jakobovits.S.M

Superfund: An Assessment of Superfund Site Remedy Selectioin and Implementation

Since its inception in 1980, the U.S. Environmental Protection Agency’s (EPA) Superfund Program has served as the primary mechanism for coordinating the remediation of sites contaminated with hazardous substances. Although the program has successfully overseen cleanup at hundreds of sites, experts have identified a number of weaknesses in the remedy selection and implementation processes. Our study focuses on two weaknesses that have been identified at individual Superfund sites in the previous literature: Remedy Selection: • Selection of non-permanent remedies over permanent remedies Remedy Implementation: • Inconsistency and non-transparency shown in the documentation of cleanup objectives, site cleanup progress, and problems during remedy implementation Although these weaknesses were well documented in previous literature, our group found little evidence that the underlying cause of these weaknesses had been addressed. Our study adds to the current understanding of these weaknesses by investigating their origins using established policy and engineering systems analysis techniques. We have based our analysis on three Superfund site case studies. We offer several recommendations that address the observed weaknesses in site remedy selection and implementation. Lastly, we include suggestions for areas in which further inquiry may be useful