California’s Cap and Trade Program

by Stephanie Laurancy

This article discusses California’s efforts in reducing greenhouse gas emissions particularly through discussing the extension of the cap-and-trade program. Republican assemblyman Matias Davis, was one of eight republican state legislators to support the cap and trade extension which would add a decade extending it to 2030. Cap-and-trade limits (puts a “cap” on) companies thus minimizing the number of greenhouses gasses they emit. Should the companies exceed the limit, they may be penalized and penalties may become more strict overtime. The trade portion comes in as a market where companies can buy or sell allowances that permit them to emit only a certain amount of emissions. Although the “cap” portion of cap and trade may be very strict, the trade part provides a great incentive for companies to save money by reducing emissions. Republicans in the state typically do not support the cap-and-trade as it has been describing as “government overreach”. Cap-and-trade has helped with the reduction of carbon emissions; however, the program still faces strong opposition.

The idea of the program being considered to be “government overreach” raises the point that we discussed in class: Should the government get involved in environmental policy?

I would love to hear your opinions on the article.