The great sulphur dioxide allowance bull market

What lessons can we learn from the first cap-and-trade system?

The EU’s carbon market was not the worlds first cap-and-trade system to tackle a serious environmental problem. That honour goes to the United States sulphur dioxide (SO2) allowance trading system.

Flue gas emissions from coal-fired power generation released huge quantities of sulphur dioxide (SO2) and nitrogen oxides (NOx) emissions high into the atmosphere. They weren’t the only source of these chemicals, but they were…