Case 4

By: Kavita Yadav, Kevin Valani, Kolten Latreille, Lyka Rose Garcia,
and Manjot Kaur Lnu
Case Summary
Is there merit?
• Cap-and-trade
• Major polluters
 • Refers to a government-imposed charge on the carbon
content of fossil fuels like gasoline, diesel, natural gas,
What is Carbon Tax? and propane. It aims to discourage the use of high-carbon
energy sources by increasing their cost.
 Is a carbon tax
any different from
a cap-and-trade
system if the tax
is set to achieve
1990 emissions
levels? Yes, a carbon tax and a cap-and-trade system are
different mechanisms for achieving emissions
reductions, even if they both aim to reach a
specific emissions target like the 1990 levels.
Diverse
Approaches:
• Mechanism of Regulation
• Flexibility
• Effect on Prices
• Administrative Complexity
• Equity Considerations
Will a carbon tax satisfy the plaintiffs?

Plaintiffs' Concerns:
- Cap-and-trade effectiveness questioned, especially in vulnerable
communities.
- Existing pollution disparities exacerbating health and quality of life
issues.
Potential Solution: Carbon Tax:
- Well-designed carbon tax with 1990-level emissions targets could
provide a meaningful pathway to sustainability.
- Incentivizes cleaner technologies and practices, reducing harmful
emissions.
Addressing Vulnerable Communities:
- Plaintiffs demand assurance of tax not exacerbating existing
inequalities.
- Measures needed to mitigate adverse effects and prevent
disproportionate burden.
Can a Carbon Tax
Satisfy Environmental
Justice Plaintiffs?
Equity in Revenue Distribution:
- Plaintiffs advocate for revenue directed towards supporting affected
communities.
- Funding for healthcare, infrastructure, and economic development to
address environmental injustices.

Broader Environmental Justice Considerations:

- Carbon tax should be part of a broader strategy aligning with
environmental justice principles.
- Community engagement, transparency, and accountability in decision-
making processes crucial.

Success of carbon tax depends on alignment with environmental

justice principles.
Reminder of the impact of present actions on future generations.
 How should ARB take the
environmental justice
considerations into account?

The California Air Resources Board (ARB)

should integrate environmental justice
considerations into their regulatory
frameworks in several ways:
1. Localized Impact Assessment
2. Community Engagement
3. Emissions Reduction at Source
4. Equitable Distribution of Funds
5. Enhanced Monitoring and Enforcement
6. Transparent Reporting and
Accountability
7. Economic and Health Impact Studies
• Localized Impact Assessment:
The ARB needs to look closely at the specific areas where emissions
might increase because of cap-and-trade. They should carry out
detailed studies that show the impact of emissions on each
community, especially those that are already struggling with
pollution. This means looking at the actual air quality in
neighborhoods, not just at the big picture.
• Community Engagement:
They need to sit down with the people who live in the areas most
affected by pollution. This includes holding meetings in these
communities, listening to what locals have to say, and really taking
their voices into account when making rules about the air they
breathe.
• Emissions Reduction at Source:
ARB should encourage companies to clean up their act right where
they are, rather than letting them pay to pollute. This means pushing
for technology and practices that cut down on pollution right from
the factories or plants, instead of relying on buying credits from
elsewhere.
• Equitable Distribution of Funds:
Money made from selling carbon credits should go back to the
communities that need it most. This could fund local clean energy
projects, health programs for those suffering from pollution-related
illnesses or create jobs in green industries. It’s about making sure
the benefits of these programs reach the people who are dealing
with the worst of the pollution.
Enhanced Monitoring and Enforcement:
ARB should not just make rules; they need to enforce them strictly.
This means more inspectors on the ground, checking that companies
follow the rules, and if they don’t, the consequences should be
significant. It’s about making sure that companies know
they can’t get away with polluting in these neighborhoods.

Transparent Reporting and Accountability:

ARB must be open about what’s going on with emissions. The data on
who’s polluting and how much should be easy for everyone to find
and understand. This way, communities know what’s happening in
their air, and they can hold ARB and polluters accountable.

Economic and Health Impact Studies:

Before any big decisions are made, ARB should study how those
decisions will affect the health and jobs of people in environmental
justice communities. They should ask: "How will this rule change a
person’s health? How will it affect their job?" Understanding these
impacts fully means better decisions for the people who have to live
with the consequences.