ECIN Replication Package for "Spillover Benefits of Carbon Dioxide Cap and Trade: Evidence from the Toxics Release Inventory"

Reducing greenhouse gas emissions is necessary to meet climate goals, but these emissions are not the only harmful bi-products of fossil-fuel combustion. This paper shows how a regional cap-and-trade program designed to regulate CO2 emissions affects the release of federally-regulated toxins in the Toxics Release Inventory. We find that the program reduces toxic releases from coal-fired electric plants by 78%, and that harmful metal releases (e.g. lead, mercury) have fallen by 54%. There is no evidence of spillovers into non-adopting areas. This co-abatement of harmful compounds provides evidence for the unintended positive effects of the CO2 cap-and-trade policy.