Shocked Markets for Pollution
8 snips
Oct 6, 2025 Jeff Homestead, a former White House regulatory lawyer, discusses the complexities of emissions markets and their role in tackling climate change. He shares insights on the innovative cap-and-trade program designed to combat acid rain and its impact on reducing pollution. The conversation shifts to adapting these markets for India, highlighting successful trials and regulatory challenges. Homestead also reflects on the political landscape, the potential for carbon markets, and the need for pragmatic leaders to drive effective solutions.
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Young Lawyer Joins White House Push
- Jeff Homestead got pulled into the White House Counsel's Office early in his career and quickly spent most of his time on regulatory issues.
- He joined a Bush administration eager to modernize the Clean Air Act and tackle pollution with new approaches.
Acid Rain Was A Political Catalyst
- Acid rain from sulfur dioxide was a major cross-border environmental and political issue in the late 20th century.
- Tackling it required a policy approach that balanced environmental goals and economic costs.
Market Flexibility Beats Prescriptive Rules
- Command-and-control rules forced specific equipment like scrubbers but were costly and rigid.
- The Bush White House favored a market-based cap-and-trade that let firms meet a cap by any cost-effective method.
