Carbon TradingCarbon TradingThe impacts of its co-The impacts of its co-

pollutants on the low-income pollutants on the low-income communities and the communities and the

communities of color in communities of color in Los AngelesLos Angeles

By John LeeHarvard UniversityExtension School

5/22/2008

Kyoto Protocol and Green-Kyoto Protocol and Green-house Gas Reductionhouse Gas Reduction• Cap-and-Trade system is included in Cap-and-Trade system is included in

the Kyoto Protocolthe Kyoto Protocol• Climate stabilization with 2 degrees Climate stabilization with 2 degrees

warmerwarmer• Reduction of Carbon Dioxide (60% - Reduction of Carbon Dioxide (60% -

80% on 1990 emission by 2050)80% on 1990 emission by 2050)**

• In California, 80% reduction In California, 80% reduction necessarynecessary

Hepburn 2007

The problem The dominant Greenhouse gas (CO2) is a

global problem. The co-pollutants are the local problem.

Air Pollution in Los Angeles

John Lee 2008

The Port of Los Angeles

John Lee 2008

City of Wilmington

John Lee 2008

City of Wilmington

John Lee 2008

Minority Population in Los Angeles Census 2006

0.00%5.00%

10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%50.00%

AfricanAmerican

AsianAmerican

Latin-American

Series1

http://quickfacts.census.gov/qfd/states/06/06037.html

Air Pollution Disparity

Toxic Release Inventory 2006

1610

826,261 798510

0

200000

400000

600000

800000

1000000

South Torrance2006

Central Torrance Willmington

Poun

ds (l

b)

http://www.epa.gov/triexplorer/

Minority Residents and Emissions in Los Angeles

Boer 1997

The History of Cap-and-The History of Cap-and-Trade SystemTrade System

• Tetraethyl Lead (Pb) Phase Out in Tetraethyl Lead (Pb) Phase Out in gasolinegasoline

• CFCs Phase out (Montreal Protocol)CFCs Phase out (Montreal Protocol)• Sulfur Dioxide ReductionSulfur Dioxide Reduction• Nitrogen Dioxide Reduction (limited Nitrogen Dioxide Reduction (limited

success)success)

Environmental Justice Groupsand the low-come communities and the communities of color are against the trading because of following reasons:

No meaningful Community involvements Possible formation of “hot-spots” Aggregated Exposure of many types of

pollutants Already over burdened with pollution

Industries want:

Flexibility (ability to choose which ones to reduce first)

Predictable policy (to prepare for the future reductions)

Clean Technology at the affordable price (a critical component of emission reduction)

Government wants: Administratively feasible approach (greater

the number of regulated sources, higher the cost of administration)

Ability to monitor effectively System which offers flexibility to industries

The people of Global South needs:

Stabilization of Green-house Gases Ability to mitigate the impacts of climate

change

Criticisms of Cap-and-Trade systemCriticisms of Cap-and-Trade system

- Emission trading is unethical.- Emission trading is unethical. In traditional command-and-control system, In traditional command-and-control system,

waivers are allowed.waivers are allowed.- No community involvementsNo community involvements Under command-and-control system, Under command-and-control system,

communities have little influence over the control communities have little influence over the control technology regulation (state or national level).technology regulation (state or national level).**

Farrell 2004Farrell 2004

Well-Designed Cap-and-Trade System

Adopt an up-steam, economy wide cap-and-trade system to ensure overall reduction (i.e., capping the distribution points, importation points, fuel extraction points,….)

Equitable (no reduction or insignificant reduction not acceptable for low-income communities and the communities of color)

No “hot-spots” (photo-chemical reactions) Cost effective (over command-and-control system) Permit allocation: free distribution and open auction Economically viable yet environmental outcomes

ensured

ConclusionConclusion Up-stream approach reduces number of Up-stream approach reduces number of

regulated sources, reduces carbon regulated sources, reduces carbon emission/co-pollutants, and gives industries emission/co-pollutants, and gives industries the optionsthe options

Improve community involvements (with the Improve community involvements (with the help of expert volunteers)help of expert volunteers)

Invest in the clean technologies (auctioning Invest in the clean technologies (auctioning allowances generates revenues)allowances generates revenues)

Invest for the alternative energyInvest for the alternative energy Sustainable lifestyleSustainable lifestyle