California’s cap and trade system for greenhouse gas emissions begins in January 2013. In addition to capping emissions, the policy aims to deliver public health benefits by reducing air pollution.
This report examines how industrial facilities respond to cap and trade, and shows that the most likely responses will reduce air pollution as well as greenhouse gas emissions. This is supported by evidence that Europe’s cap and trade system has reduced local air pollution from oil refineries and other industrial facilities.
Good coordination between air quality and climate change regulators will help maximise the public health benefits.