Emission trading systems contributes to economic efficiency by facilitating emission reductions where it is cheapest to achieve them. Polluters who would find it costly to reduce their emission are allowed to buy emission allowances from polluters that can abate at lower costs. In a ‘perfectly’ working market, the costs of reducing an additional unit of emissions would be equalised, and total costs of reaching a given environmental target would be minimised. Ex post evaluations of a number of tradable permit systems can be found in the publication .
The current use of emission trading systems (and a number of other environmental policy instruments) is documented in a freely available . The database gives information on the environmental problems addressed by the trading system, on the item that is traded, the trading partners, any revenues raised by the sale of permits, etc. The database is much used by civil servants, academics, industry representatives, etc., and OECD draws heavily on it for regular assessments of policies in member countries and partner countries.
A broader use of emission trading systems (or of environmental taxation) would be one of the most efficient and effective ways of promoting green growth. The OECD has been analysing and promoting the use of marked-based instruments for many years. Most of the work was carried out under the auspices of the former Working Party on National Environmental Policies, and recently renamed the Working Party on Integration of Environment and Economic Policies. Part of the work has also been done under the auspices of the Joint Meetings of Tax and Environment Experts, where experts primarily from ministries of finance and of environment come together twice a year. These meetings are being served by OECD’s Centre for Tax Policy and Analysis and Environment Directorate, with contributions also from other parts of the organisation.
The evaporative emission control system prevents the uncontrolled release of gasoline vapors (hydrocarbons) into the atmosphere. These vapors are produced when fuel evaporates in the sealed fuel tank. The system includes a charcoal canister, canister purge solenoid valve, fuel check valve, overfill limiter, fuel cap and on some late model vehicles, a fuel tank pressure (FTP) sensor and a canister close valve (CCV).
|Fig. 1: Evaporative emission system utilizing a thermostatic