ES110 Lecture Notes - Lecture 13: Sulfur Dioxide, Acid Rain, Brian Mulroney
ES110 Lecture 13
Option 4 for reducing GHG emissions: Create a marker for GHG pollution
• Often referred to as a cap-and-trade system
• Cap and trade in Europe
o Each EU country is permitted a maximum amount of GHG emissions (a “cap”)
o Within each country, large producers of GHGs are assigned annual permits for emissions o If they
reduce their emissions, they can sell unused permits for a profit to others
o Over time, the # of emissions permits is gradually reduced
• Western Climate Initiatives
o Is a cap-and-trade system set up by California, Arizona, New Mexico, Oregon &
Washington state
o Auctions off government-issued GHG emissions permits to industry o Quebec, Nova Scotia are
members
o Ontario had joined, but now Doug Ford wants out
o A problem = ON has already sold $2 billion in emissions permits
• Does cap and trade work?
It worked very well to control acid rain in US Acid Rain
• ▪ Caused by air pollution
• ▪ Sulfur dioxide and nitrous oxide emitted by burning coal is absorbed by water
vapour in the air
• ▪ Falls to earth as acidic precipitation
• ▪ Was very prevalent in industrialized areas until 1980s
Acid rain impacts
▪ Harms trees, aquatic organisms ▪ Damage stone, cement buildings
Reduction of Acid rain
▪ In 1990s, US government enacted regulations and cap-and-trade system to
reduce sulfur dioxide emissions • Will cap and trade work for GHG emissions? Environmental Studies
Final Exam Review
o The challenge is setting the right price on emissions permits
o If price is too low, it does not incentivize good behaviour
o If price is set too high, too quickly, can cause economic problems o A key challenge is
communicating to the public how it works
