A Temporal NOx Emissions Trading System: Case Study of US Power Plants

  • S. Morteza MesbahEmail author
  • Amir Hakami
  • Stephan Schott
Conference paper
Part of the Springer Proceedings in Complexity book series (SPCOM)


Despite the significant NOx reduction in the past decade, ozone concentrations in the eastern US are in violation of the National Ambient Air Quality Standard (NAAQS). This is because the location- and time-specific effects of NOx emissions on ozone formation have not been taken into consideration under cap-and-trade programs where polluters trade their emission quotas on a one-to-one basis. To account for such effects, a cap-and-trade program can be reformed by inclusion of exchange rates set by the regulator on an hourly basis. We examine the performance of such a reformed cap-and-trade program using a case study of US power plants. Our results indicate that shifting emissions from high-damage hours to low-damage hours can significantly improve the performance of the system.


Exchange Rate Ozone Concentration Abatement Cost Emission Trading Emission Trading System 
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Copyright information

© Springer International Publishing Switzerland 2014

Authors and Affiliations

  • S. Morteza Mesbah
    • 1
    Email author
  • Amir Hakami
    • 1
  • Stephan Schott
    • 2
  1. 1.Department of Civil and Environmental EngineeringCarleton UniversityOttawaCanada
  2. 2.School of Public Policy and AdministrationCarleton UniversityOttawaCanada

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