The results of the 2007 annual EPA auction are in, with the spot allowance for a ton of SO2 coming in at $433.25. Kudos to the Washington College Student Environmental Alliance, who paid a whopping $1120 for their 1 allowance! Costly way to take a ton out of the environment – common, but is it useful? quaint? symbolically important? Santee Cooper (under the name South Carolina Public Service Authority) bought 15,000 tons. And Morgan Stanley bought 50,000 tons, 40% of the total allowances available this year. They bought 50% of the available allowances last year too – they have obviously been moving into this field.
Other interesting results: there were only 14 winners, and only 17 total bidders – this is pretty small compared to previous years. The winners are really in four categories: 1) power producers; 2) energy traders; 3) environmental or educational groups; and 4) non-energy institutional traders (like Morgan Stanley).