ABSTRACT
After a long period of discussion among interest groups concerning market design changes and agency decisions, the start of the market in 2000 was launched amidst considerable uncertainties and concerns. The business community was divided, with many smaller businesses concerned about the availability of tradable permits and their price. The environmental community was greatly concerned about hot spots and spikes in emissions. The Illinois Environmental Protection Agency (IEPA) seemed edgy about achieving emission reductions and the difficulties of monitoring emissions under the new regulatory regime. The academic community was perhaps most eager for the start of the market in order to test models and to estimate the improvement in air quality and cost-effectiveness of this new regulatory measure.
