The stringent regulations will provide timely local and regional benefits relying primarily on a combination of fuel sulfur limits and emissions controls to achieve the significant reductions. Another component to the reduction strategy is utilization of market-based incentives. Market-based incentives, such as emissions trading, provide the sources an economic incentive to reduce emissions beyond compliance. The DEP has found that emissions trading programs yield earlier and more cost-effective emission reductions than in other programs. A trading program provides an incentive for sources to reduce emissions more than is required, further reducing air pollution and a portion of the credits created by the overcontrol of emissions are permanently retired.
Trading also helps to ensure reliable sources of energy without adversely impacting our environment.
Only those sources that are in compliance with existing standards can participate in the trading program and the benefit locally is that those sources work collectively, rather than individually, towards reducing air pollution.