Use of Carbon Credits in Transportation System Development
Growing concern about climate change has led to policies and regulations designed to develop regional or even federal carbon markets, where carbon credits are bought, sold, and traded. The carbon credits are broadly defined to include emission allowances, renewable energy certificates, and others. This research project is to investigate existing carbon market framework (established and under-development) and evaluate the benefit and cost of participating in the carbon market for transportation agencies, including Metropolitan Planning Organizations, State Highway Agencies, airports, transit authorities, and so on. The research will also define the elements of a carbon credit program, and identify opportunities, challenges, administrative efforts and costs to develop such carbon credit program. It is expected that the successful completion of this research project would provide transportation agencies with a decision model and procedure for developing agency’s carbon credit program.