Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016

The document assesses the financial impact on industrial subsectors under a cap-and-trade scenario with no rebates, noting that most would face compliance costs between 1% and 6% of shipment value, with specific high-risk sectors identified.

• Under a scenario with no rebates, most industrial subsectors would experience compliance costs ranging from 1% to 6% of their value of shipments.
• The subsectors facing the highest risk in the absence of rebates include industrial gas, carbon black, nitrogenous fertilizers, and alkalies and chlorine.
• Future climate policy may alter the criteria for free allowances, potentially eliminating them for industry, or providing an amount insufficient to cover all emissions obligations for eligible subsectors under the American Power Act (APA).

APA

World Resources Institute (2016). Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016. https://www.wri.org/data/illustrative-compliance-costs-subsector-and-cap-and-trade-policy-scenario-assuming-no-rebates

Chicago

World Resources Institute. Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016. 2016. https://www.wri.org/data/illustrative-compliance-costs-subsector-and-cap-and-trade-policy-scenario-assuming-no-rebates.

Wikipedia

{{cite report |author=World Resources Institute |title=Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016 |date=2016 |url=https://www.wri.org/data/illustrative-compliance-costs-subsector-and-cap-and-trade-policy-scenario-assuming-no-rebates |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2016illustrative, author = {{World Resources Institute}}, title = {{Illustrative Compliance Costs by Subsector and by Cap-and-Trade Policy Scenario Assuming No Rebates in 2016}}, institution = {World Resources Institute}, year = {2016}, url = {https://www.wri.org/data/illustrative-compliance-costs-subsector-and-cap-and-trade-policy-scenario-assuming-no-rebates}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }