communities. Distributional effects The US Congressional Budget Office (CBO, 2009) examined the potential effects of the American Clean Energy and Security Act on US households. This act relies heavily on the free allocation of permits. The Bill was found to protect low-income consumers, but it was recommended that the Bill be made more efficient by reducing welfare provisions for corporations, and more resources be made available for consumer relief. A cap-and-trade initiative in the U.S. Northeast caused concerns it would be regressive and poorer households would absorb most of the new tax. Carbon Leakage The current state of ETS shows that roughly 22% of global greenhouse emissions are covered by 64 carbon taxes and emission trading systems as of 2021. This means that there are still several member states that have not ratified the Kyoto Protocol. This is a cause of concern for energy intensive industries that are covered by such instruments that claim that there is a loss of competitiveness. Such corporations are thereby forced to take strategic production decisions that contribute to the issue of carbon leakage. See also Acid Rain Retirement Fund AP 42 Compilation of Air Pollutant Emission Factors Asia-Pacific Emissions Trading Forum Cap and Dividend Cap and Share Carbon credit Carbon emissions reporting Carbon finance Carbon offset Carbon tax Emission standard Energy law Flexible Mechanisms Green certificate Green investment scheme Individual and political action on climate change Low-carbon economy Low carbon power generation / Renewable energy Mitigation of global warming Mobile emission reduction credit (MERC) Personal carbon trading Pigovian tax Public Smog Reducing emissions from deforestation and forest degradation Verified Carbon Standard References Further reading External links Dr. Daniel Fine of the New Mexico Center for Energy Policy on Cap and Trade Emissions Trading and CDM – International Energy Agency Greenhouse Gas Emissions Trading and Project-based Mechanisms – Organisation for Economic Co-operation and Development US EPA's Acid Rain Program [https://web.archive.org/web/20141128104812/http://www.epa.state.il.us/air/erms/ Illinois Emissions Reduction Market System] "The Making of a Market-Minded Environmentalist", article by Fred Krupp in Strategy+Business'' (registration required) that articulates some of the reasoning and history behind emissions trading in California Climate change policy Economics and climate change Environmental controversies Contexts for auctions Governmental auctions