Dr Danilo Mascia interviewed on California Cap and Trade Programme research
Dr Danilo Mascia, Associate Professor in Banking and FinTech, was recently interviewed by Jefferson Public Radio on the findings of his latest publication on California's Cap and Trade Programme.
The publication, titled ‘Keep calm and carry on emitting: cap-and-trade rules, local emissions and growth’ was co-authored with Professor Enrico Onali from the University of Exeter and published in the Regional Studies journal. After extensive research, Dr Mascia and Professor Onali concluded that California’s Cap and Trade Programme does not achieve its twin goal of reducing carbon emissions while allowing for economic growth.
Dr Mascia commented: “The Cap and Trade Programme is preferred because it is easier to implement and because it is more socially acceptable than a carbon tax. But, then when we look into whether the Cap and Trade Programme has actually been effective or not then that depends on a case by case basis.”
The Cap and Trade Programme (CATP) was introduced in 2013 to reduce carbon emissions to 40% below 1990 levels by 2030. The programme sets carbon emission limits for businesses in California and uses a system of carbon credits that businesses can buy through auctions and trade with other businesses if they exceed their emission limits.
Dr Mascia notes that their research found little difference county-by-county in either emissions or economic growth between California counties under CATP and counties in neighbouring states not regulated by the program, in the short term.
Dr Mascia and Professor Onali’s research suggests the failure to reduce emissions could result from a ‘poorly designed allowance-allocation system’.