Cap-and-Trade Carbon Pricing in Utah: Challenges and Potential Impact

Authors

Katherine Michaels
Kendall Becker, Utah State UniversityFollow
Alexi Elizabeth Lamm, Utah State UniversityFollow
Scott Hotaling, Utah State UniversityFollow

Document Type

Factsheet

Publisher

Utah State University Extension

Publication Date

7-29-2024

First Page

1

Last Page

12

Abstract

Cap-and-trade programs are a market-based form of carbon pricing that allows companies to trade with each other using carbon credits. Carbon credits function as permission slips to emit a certain amount of carbon. The “cap” establishes the number of carbon credits an industry or region has available for trading. Companies are incentivized to emit less because they can sell their excess carbon credits to other companies. Several cap-and-trade programs exist in the United States, and these programs are effectively reducing carbon emissions while creating net economic benefits for their regions. A cap-and-trade program could help Utah reduce carbon emissions in the state while also improving air quality.

Recommended Citation

Michaels, K., Becker, K., Lamm, A., & Hotaling, S. (2024). Cap-and-trade carbon pricing in Utah: Challenges and potential impact [Fact sheet]. Utah State University Extension.