{"id":89,"date":"2010-11-20T10:56:00","date_gmt":"2010-11-20T15:56:00","guid":{"rendered":"http:\/\/blogs.edf.org\/markets\/?p=89"},"modified":"2010-12-02T17:07:28","modified_gmt":"2010-12-02T22:07:28","slug":"ccx-rip","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/","title":{"rendered":"CCX, RIP\u2014or is it “good riddance”?"},"content":{"rendered":"

\"ChicagoThe Chicago Climate Exchange, one of the first voluntary cap-and-trade programs, is shutting down next month. That’s bad news for the planet, isn’t it?\u00a0Just take a look at today’s\u00a0Wall Street Journal<\/em> editorial page for an apparent confirmation. There the news is being celebrated as “cap and retreat.” Check.<\/p>\n

That should indeed be confirmation enough. Sadly, what’s good for the Journal<\/em> tends to be bad for the planet. Here that may not hold, although it’s not for the reasons the Journal <\/em>thinks.<\/p>\n

One among many<\/h3>\n

The full editorial is behind a firewall. That’s just as well. The rest is as wrong<\/a> as the beginning.\u00a0Let’s start with the only direct quote. The Journal<\/em> opinionators say the CCX advertised itself as “North America’s only cap and trade system for greenhouse gasses.” In fact, CCX’s own webpage says<\/a> it’s “North America’s only cap and trade system for all six<\/em> greenhouse gases.” That makes all the difference.<\/p>\n

Carbon dioxide, the main greenhouse gas, is or will be covered in at least 15 states. RGGI covers 10 Northeastern states<\/a> with its carbon cap, and Californians just reaffirmed with a clear vote<\/a> of 60 to 40 to put in place theirs (which also covers all six greenhouse gases). New Mexico<\/a> has announced similar plans.<\/p>\n

Volunteerism won’t do<\/h3>\n

There’s also a much larger point here. The CCX was voluntary<\/em>. Companies volunteered to sign up. It doesn’t take a Ph.D. in economics to realize that the only companies who sign up for reasons other than marketing purposes are the ones that have allowances to sell. Those that need to buy them, stay as far away as possible.<\/p>\n

No market can operate under these conditions. If anything, it’s surprising the market held up as long as it did\u2014no doubt due to companies’ willingness to write off their participation as a marketing expense. Why else would the price for a ton of emissions ever be much above zero?<\/p>\n

Thanks for the memories<\/h3>\n

CCX did provide some valuable lessons for participants. Chief among them, how to implement such a trading system internally, how to minimize emissions and make money, and whether and how it would be different from SO2 trading<\/a>, something many CCX participants did successfully for over a decade.<\/p>\n

But CCX was never meant to be anything other than a precursor for a U.S.-wide system.<\/p>\n

The same, of course, goes for most state-wide initiatives. New Mexico’s plans will put the state ahead of most others in the U.S., but Santa Fe alone will not prevent China from pulling farther ahead of the U.S. in generating sustainable jobs, or decrease the billions we send to the Middle East every year.<\/p>\n","protected":false},"excerpt":{"rendered":"

CCX folds. The WSJ rejoices. What’s in it for the planet?<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9031],"tags":[],"coauthors":[],"class_list":["post-89","post","type-post","status-publish","format-standard","hentry","category-cap-and-trade-watch"],"acf":[],"yoast_head":"\nCCX, RIP\u2014or is it "good riddance"? - Market Forces<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CCX, RIP\u2014or is it "good riddance"? - Market Forces\" \/>\n<meta property=\"og:description\" content=\"CCX folds. The WSJ rejoices. What's in it for the planet?\" \/>\n<meta property=\"og:url\" content=\"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Forces\" \/>\n<meta property=\"article:published_time\" content=\"2010-11-20T15:56:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2010-12-02T22:07:28+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/msnbcmedia1.msn.com\/j\/msnbc\/Components\/Photos\/061017\/061017_merc_exchange_vlrg_7a.widec.jpg\" \/>\n<meta name=\"author\" content=\"Gernot Wagner\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gernot Wagner\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/\"},\"author\":{\"name\":\"Gernot Wagner\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/#\\\/schema\\\/person\\\/848fa9daa71b0c5e7795b5938249145a\"},\"headline\":\"CCX, RIP\u2014or is it “good riddance”?\",\"datePublished\":\"2010-11-20T15:56:00+00:00\",\"dateModified\":\"2010-12-02T22:07:28+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/\"},\"wordCount\":466,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/msnbcmedia1.msn.com\\\/j\\\/msnbc\\\/Components\\\/Photos\\\/061017\\\/061017_merc_exchange_vlrg_7a.widec.jpg\",\"articleSection\":[\"Cap and Trade Watch\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/\",\"url\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/\",\"name\":\"CCX, RIP\u2014or is it \\\"good riddance\\\"? - Market Forces\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/msnbcmedia1.msn.com\\\/j\\\/msnbc\\\/Components\\\/Photos\\\/061017\\\/061017_merc_exchange_vlrg_7a.widec.jpg\",\"datePublished\":\"2010-11-20T15:56:00+00:00\",\"dateModified\":\"2010-12-02T22:07:28+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/#\\\/schema\\\/person\\\/848fa9daa71b0c5e7795b5938249145a\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/#primaryimage\",\"url\":\"http:\\\/\\\/msnbcmedia1.msn.com\\\/j\\\/msnbc\\\/Components\\\/Photos\\\/061017\\\/061017_merc_exchange_vlrg_7a.widec.jpg\",\"contentUrl\":\"http:\\\/\\\/msnbcmedia1.msn.com\\\/j\\\/msnbc\\\/Components\\\/Photos\\\/061017\\\/061017_merc_exchange_vlrg_7a.widec.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/2010\\\/11\\\/20\\\/ccx-rip\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"CCX, RIP\u2014or is it “good riddance”?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/#website\",\"url\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/\",\"name\":\"Market Forces\",\"description\":\"Economic Incentives = Environmental Gains\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/#\\\/schema\\\/person\\\/848fa9daa71b0c5e7795b5938249145a\",\"name\":\"Gernot Wagner\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0d66a48dd6a3d249bbcced735900500b81779d508e4c8e4ecb8e694ea6517820?s=96&d=mm&r=gb2339d45dd0824feb4b6a542a1cc2c3b\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0d66a48dd6a3d249bbcced735900500b81779d508e4c8e4ecb8e694ea6517820?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/0d66a48dd6a3d249bbcced735900500b81779d508e4c8e4ecb8e694ea6517820?s=96&d=mm&r=g\",\"caption\":\"Gernot Wagner\"},\"description\":\"\u00a0\u00a0 Consultant Gernot Wagner, Ph.D., works closely with EDF\u2019s Office of Economic Policy and Analysis, participating in projects relating to climate damages and tipping points, the social cost of carbon, empirical modeling of climate change and human activity, and others.\",\"sameAs\":[\"http:\\\/\\\/www.edf.org\\\/gwagner\"],\"url\":\"https:\\\/\\\/blogs.edf.org\\\/markets\\\/author\\\/gwagner\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"CCX, RIP\u2014or is it \"good riddance\"? - Market Forces","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/","og_locale":"en_US","og_type":"article","og_title":"CCX, RIP\u2014or is it \"good riddance\"? - Market Forces","og_description":"CCX folds. The WSJ rejoices. What's in it for the planet?","og_url":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/","og_site_name":"Market Forces","article_published_time":"2010-11-20T15:56:00+00:00","article_modified_time":"2010-12-02T22:07:28+00:00","og_image":[{"url":"http:\/\/msnbcmedia1.msn.com\/j\/msnbc\/Components\/Photos\/061017\/061017_merc_exchange_vlrg_7a.widec.jpg","type":"","width":"","height":""}],"author":"Gernot Wagner","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Gernot Wagner","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/#article","isPartOf":{"@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/"},"author":{"name":"Gernot Wagner","@id":"https:\/\/blogs.edf.org\/markets\/#\/schema\/person\/848fa9daa71b0c5e7795b5938249145a"},"headline":"CCX, RIP\u2014or is it “good riddance”?","datePublished":"2010-11-20T15:56:00+00:00","dateModified":"2010-12-02T22:07:28+00:00","mainEntityOfPage":{"@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/"},"wordCount":466,"commentCount":0,"image":{"@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/#primaryimage"},"thumbnailUrl":"http:\/\/msnbcmedia1.msn.com\/j\/msnbc\/Components\/Photos\/061017\/061017_merc_exchange_vlrg_7a.widec.jpg","articleSection":["Cap and Trade Watch"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/","url":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/","name":"CCX, RIP\u2014or is it \"good riddance\"? - Market Forces","isPartOf":{"@id":"https:\/\/blogs.edf.org\/markets\/#website"},"primaryImageOfPage":{"@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/#primaryimage"},"image":{"@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/#primaryimage"},"thumbnailUrl":"http:\/\/msnbcmedia1.msn.com\/j\/msnbc\/Components\/Photos\/061017\/061017_merc_exchange_vlrg_7a.widec.jpg","datePublished":"2010-11-20T15:56:00+00:00","dateModified":"2010-12-02T22:07:28+00:00","author":{"@id":"https:\/\/blogs.edf.org\/markets\/#\/schema\/person\/848fa9daa71b0c5e7795b5938249145a"},"breadcrumb":{"@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/#primaryimage","url":"http:\/\/msnbcmedia1.msn.com\/j\/msnbc\/Components\/Photos\/061017\/061017_merc_exchange_vlrg_7a.widec.jpg","contentUrl":"http:\/\/msnbcmedia1.msn.com\/j\/msnbc\/Components\/Photos\/061017\/061017_merc_exchange_vlrg_7a.widec.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/blogs.edf.org\/markets\/2010\/11\/20\/ccx-rip\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/blogs.edf.org\/markets\/"},{"@type":"ListItem","position":2,"name":"CCX, RIP\u2014or is it “good riddance”?"}]},{"@type":"WebSite","@id":"https:\/\/blogs.edf.org\/markets\/#website","url":"https:\/\/blogs.edf.org\/markets\/","name":"Market Forces","description":"Economic Incentives = Environmental Gains","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/blogs.edf.org\/markets\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/blogs.edf.org\/markets\/#\/schema\/person\/848fa9daa71b0c5e7795b5938249145a","name":"Gernot Wagner","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/0d66a48dd6a3d249bbcced735900500b81779d508e4c8e4ecb8e694ea6517820?s=96&d=mm&r=gb2339d45dd0824feb4b6a542a1cc2c3b","url":"https:\/\/secure.gravatar.com\/avatar\/0d66a48dd6a3d249bbcced735900500b81779d508e4c8e4ecb8e694ea6517820?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0d66a48dd6a3d249bbcced735900500b81779d508e4c8e4ecb8e694ea6517820?s=96&d=mm&r=g","caption":"Gernot Wagner"},"description":"\u00a0\u00a0 Consultant Gernot Wagner, Ph.D., works closely with EDF\u2019s Office of Economic Policy and Analysis, participating in projects relating to climate damages and tipping points, the social cost of carbon, empirical modeling of climate change and human activity, and others.","sameAs":["http:\/\/www.edf.org\/gwagner"],"url":"https:\/\/blogs.edf.org\/markets\/author\/gwagner\/"}]}},"_links":{"self":[{"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/posts\/89","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/comments?post=89"}],"version-history":[{"count":0,"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/posts\/89\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/media?parent=89"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/categories?post=89"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/tags?post=89"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.edf.org\/markets\/wp-json\/wp\/v2\/coauthors?post=89"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}