“A cap and trade programme with appropriate allocation of allowances will protect consumers as we develop technologies to reduce carbon dioxide emissions,” said Rogers setting out a scheme similar to that introduced in 1990 to curb emissions of sulphur dioxide.
However, Rogers is opposed to an auction approach to such as scheme, which he says will disproportionately harm regions that depend on coal – especially the 25 states in the Midwest, Southeast and Great Plains.
Giving evidence before the United States Senate Environment and Public Works Committee Rogers said: “Forcing customers in these regions to bear the cost of buying allowances for existing plants, while at the same time bearing the cost of retrofitting and replacing existing plants would result in a double hit.”
Rogers added: “From our perspective, there is simply no economic justification to give allowances to nuclear and hydro plants that will not incur any costs to comply with the programme. Doing so would be like giving these companies a printing press to make money at the expense of other regions of our country. There is no justification for such a windfall.”
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