The governor and legislative leaders like to point out that market-based programs like cap and trade reduced emissions over the last decade while growing the economy.
But, Borenstein found that “…the impact of variation in economic growth on emissions is much greater than any predictable response to a price on emissions, at least to a price that is within the bounds of political acceptability.”
In other words, the great recession was the big factor in emissions reductions.
(For an example of how natural forces can affect emissions, consider the fact that 2016 emissions reductions from sources subject to cap and trade were largely due to increases in hydro-electric power after record rainfall.)
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