It is highly likely that California’s cap-and-trade program post-2020 will be enabled under the state’s new SB-32 and AB-197 bills, as it is a necessary part of a policy package maximizing net social benefits. However, policymakers will have to make some adjustments to cap-and-trade program design regarding, for example, new limits on out-of-state offsets and how allowances are to be allocated post-2020.
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