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Cap and trade scheme for the Mexican auto industry

To provide Mexico's National Institute of Ecology (INE) with a comprehensive economic analysis of its proposed cap and trade scheme for the Mexican automobile industry.


19° 26' 3.12" N, 99° 8' 18.96" W
Main activity and output: 
  • Develop an economic model to analyse the impact of the  proposed cap and trade scheme, examining private and social costs and benefits
  • Meet regularly with INE to ensure that the analysis complements and helps develop the regulatory initiative 
  • Organise periodic workshops to present progress and get feedback Provide INE with technical support in presenting results to federal actors and in forming a coalition to promote the regulation's adoption.
Expected impact: 
  • Provision of critical arguments to support the cap-and-trade proposal at the heart of the efficiency regulation
  • Formation of a federal coalition that will refine and lobby for the proposal  
  • Facilitation of the passage of an energy efficiency norm for the private vehicle sector in 2010
  • CTS-Mexico has calculated that by 2030 such a regulation could reduce national carbon emissions by 220 MtCO2, thereby reducing particulate emissions <2.5 micrometers by 8,300 tons and saving 2,150 million Euros.
  • Auto sector carbon emissions reduction achieved at lowest marginal cost


Automotive industry

In the past few years, automotive industry was much affected of the economic crisis. Just a week ago, President Obama went to visit the Jeep construction facility in Toledo, Ohio. The trip comes two years after Obama's administration decided to bail out the troubled car market. That bailout cost working class individuals $60 billion. The president received a warm reception from a group who were thankful for a move which has kept them currently employed. The group did not need additional installment loans to get by.