Some Design Lessons From Market-Based Greenhouse Gas Regulation
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(0)Overview: University describes objectives, design and outcomes to date of electricity industry restructuring, the Mandatory Renewable Energy Target, the NSW Greenhouse Benchmarks, the Queensland 13% Gas scheme and Government accredited Green Power. From this, one can draw some key design lessons for such market-based instruments. These include the perils of abstraction in scheme design, the vital importance of setting appropriate baselines in baseline and credit schemes, the possibility that such measures may interact in ways that reduce their environmental effectiveness, market for lemon risks with tradable instruments that have measurement, verification or additionality difficulties, etc.
