One of the most important decisions to resolve in implementing a cap-and-trade system is the question of how emission allowances initially are allocated to participants. A new working paper from the Nicholas Institute and Duke's Center on Global Change provides a framework for policymakers to understand the options they have regarding allowance allocation, tradeoffs to consider in choosing among the options, and the economic impacts different options may have on trading-system participants and their customers. The paper, which explores options for differentiating allocation between industrial sectors and the electricity sector, was written by Eric Williams, co-director at Duke's Climate Change Policy Partnership. It's available online here. 

As part of the Institute's ongoing commitment to environmental education, staff members are teaching three Duke University courses this semester. Rafe Sagarin, associate director for ocean and coastal policy, is teaching a graduate course on marine ecosystem based management. Bill Holman, director of state policy, is teaching a course for graduate and undergraduate students on North Carolina environmental policymaking. And Brian Murray, director for economic analysis, and Lydia Olander, senior associate director for ecosystem services, are teaching a graduate course on ecosystem services markets. "Extending our expertise to students is a key mission of the Institute," says Director Tim Profeta. "Educating the next generation of environmental leaders is one way we help bridge the gap between science and policy." To learn more, go here. 

Institute staff members regularly are cited by the media for their informed, unbiased expertise on environmental policy. In a lead editorial on Feb. 3, the editors of the /Raleigh News & Observer/ cited Bill Holman, director of state policy, as "the reasoned voice" on water impact fees, the drought and North Carolina water conservation issues. Rafe Sagarin, associate director for ocean and coastal policy, scored international ink in /New Scientist/ magazine, United Press International and the Environment News Network for his new book, /Natural Security/, which applies lessons learned from nature to natural security issues such as terrorism. These and other recent Institute news clips are online here.