07/31/2024 | Press release | Distributed by Public on 07/31/2024 07:18
This comment to the California Air Resources Board analyzes proposed changes to the state's cap-and-trade program.
Date
July 31, 2024
Authors
Publication
Testimony and Public CommentsReading time
1 minuteThe California Air Resources Board (CARB) hosted a workshop on July 10 that identified three different emissions budget pathways for upcoming rulemaking that would achieve the same cumulative emissions reductions by 2045. Resources for the Future analyzed each budget's impact on auction revenue assuming, given the presence of a robust allowance bank, that compliance behavior and allowance prices would be equivalently determined by the fundamental cumulative allowance supply. Compliance behavior and price formation may differ from this due to uncertainty and market psychology.
The two accompanying analyses reach three findings.
Read the accompanying note on the allowance price containment reserve.