Allowing States to Retire Allowances without Affecting National Allowance Prices: A Straw Proposal

Over the past decade, while federal policymakers were debating when and how to act to reduce greenhouse gas emissions, state have played an early and important role in reducing greenhouse gas emissions responsible for climate change. As Congress and the Obama administration consider proposals to address climate change on a national level, there is a growing appreciation for state leadership on the issue and the need to work in partnership with states going forward. While calls for a federal-state partnership grow louder, specific ideas on how to structure such a partnership are needed.