Geoscience Reference
In-Depth Information
CERTIFICATE 1031144AH23.
EMISSIONS ALLOWANCE FOR THE UNITED STATES OF PACIFICA
1000 tons of carbon dioxide equivalent
This certificate provides that the registered owner is allowed to emit a designated quantity of
emissions of carbon dioxide into the atmosphere. The rules governing the measurement of
emissions are governed by USP Reg. 120.12.12 in the USP Register of August 18, 2013. Use
and transfer of the allowances will be governed by the prevailing regulations.
The registered owner is Hypo Utility Co. incorporated in the State of Marylondia USP.
These allowances are fully transferable for emissions within the territory of the USP upon
registration with the Allowance Management System of the Pacifica Environmental Protection
Agency.
Emissions under this certificate are available beginning on January 15, 2015 and may be used
until December 31, 2019.
Dr. E. N. Viron
January 20, 2014
Signature
Date
Figure 34.
Whimsical certifi cate for emissions allowance for the United States of Pacifi ca.
emit a given quantity of CO
2
or other GHG. This kind of regulation has
been used by governments around the world to reduce pollution.
Just for fun, Figure 34 shows a hypothetical allowance certifi cate.
In the modern era, certifi cates are electronic and contain complex reg-
ulatory requirements, but this gives the basic idea that emissions allow-
ances are ownership rights that can be bought and sold like cars and
houses.
The next stage is a brilliant innovation by environmental econo-
mists: the “trade” in cap and trade. In addition to having emissions al-
lowances, fi rms can buy and sell the allowances. Perhaps fi rm A owns
1,000 tons of allowances and decides to shut down an obsolete power
plant; perhaps fi rm B desires to open a profi table new computer server
farm that will emit 1,000 tons of CO
2
. Firm A can sell its valuable al-
lowances to fi rm B.
How would they set the emissions price? There might be an ex-
change where allowances are bought and sold; or dealers might link
