Greenhouse Gas Emissions Trading in U.S. States

The report analyzes the success of the Ozone Transport Commission's NOx Budget Program, the first multilateral cap-and-trade system for air pollutants, as a model for state-led greenhouse gas emissions trading. It finds that the program effectively reduced emissions between 1999 and 2002 without harming economic vitality, eventually facilitating the adoption of a broader federal system. The author argues that states should take the initiative on greenhouse gas controls to spur innovation and potentially pave the way for national-scale reductions.

• The Ozone Transport Commission (OTC) NOx Budget Program was the first multilateral cap-and-trade system for air pollutants and was effective administratively, environmentally, and economically. Between 1999 and 2002, the program achieved significant reductions in annual emissions without negatively impacting the economic vitality of the region.
• The success of the state-led NOx Budget Program served as a catalyst for larger-scale action, as it was incorporated into a federal system starting in 2003. This transition was supported by the data, information, and stakeholder commitment developed through state-level leadership.
• The author suggests that U.S. states should apply the lessons from NOx and sulfur dioxide trading to implement market-based greenhouse gas emissions controls. Such state-level initiatives can drive innovation in technologies and strategies, which may eventually lead to national-scale controls necessary for global emissions reductions.

APA

World Resources Institute (n.d.). Greenhouse Gas Emissions Trading in U.S. States. https://www.wri.org/research/greenhouse-gas-emissions-trading-us-states

Chicago

World Resources Institute. Greenhouse Gas Emissions Trading in U.S. States. n.d. https://www.wri.org/research/greenhouse-gas-emissions-trading-us-states.

Wikipedia

{{cite report |author=World Resources Institute |title=Greenhouse Gas Emissions Trading in U.S. States |url=https://www.wri.org/research/greenhouse-gas-emissions-trading-us-states |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendgreenhouse, author = {{World Resources Institute}}, title = {{Greenhouse Gas Emissions Trading in U.S. States}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/greenhouse-gas-emissions-trading-us-states}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }