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In support of states interested in learning more about market-based policy options, the Georgetown Climate Center developed Reducing Transportation Emissions in the Northeast and Mid-Atlantic: Fuel System Considerations to explore technical aspects of a possible regional cap-and-invest policy, as an illustrative example of a market-based approach to a multi-state transportation policy. The paper focuses on two subjects: which fuels might be covered under a policy, and which entities in the transportation fuel supply chain might be responsible for reducing emissions.

The recommendations made in this paper are intended to support robust market-based policies that provide flexibility and enable innovation while achieving region-wide reductions in carbon emissions. Prior analysis detailed the possible net economic and environmental benefits of a possible market-based transportation policy for the TCI region. Complementary financing strategies, incentives and other policies could also promote public and private-sector investments that advance clean transportation markets, reduce carbon pollution, and upgrade the region’s transportation systems.


Georgetown Climate Center

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Revised July 13, 2018.

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