The phrase "allowance requirements" is correct and usable in written English.
It can be used in contexts where specific criteria or conditions related to allowances are being discussed, such as financial, educational, or organizational settings.
Example: "Before applying for the scholarship, make sure you meet all the allowance requirements set by the committee."
Alternatives: "stipulations for allowances" or "criteria for allowances".
Power plants with higher CO2 emissions determine to install CCS system, while other power plants buy the carbon credits from domestic or international market to fulfil their carbon allowance requirements.
The heuristic, designated as the Newsvendor Production Planning with Emissions Allowance Forward Buying (NPPAFB) method, applies a forward buying algorithm to determine the number of periods for which to forward buy allowances, the current production order up to level, and the current and future emissions allowance requirements (which serves as the order up to level for allowance purchases).
The problem with import allowance requirements is that they can damage international trade relations.
Subject to possible improvements on the House floor or in the Senate, the Waxman-Markey approach of combining output-based updating allocations in the short term for select sectors with the option in the long term of a Presidential determination (under stringent conditions) for import allowance requirements for specific countries and sectors seems both sensible and pragmatic.
This may sound as though the threat of import allowance requirements in the U.S. and European cap-and-trade systems would be a powerful incentive for China to undertake emission reductions at home in order to avoid the border tax on its cement exports.
At this time, meaning in the short term, I would be more worried about the potential damage to the international trade regime that import allowance requirements could foster than about the incremental social costs that an output-based updating allocation mechanism will create.
The import allowance requirement approach has its own problems, however.
It's an open question whether this approach is superior to an import allowance requirement, whereby imports of a small set of specific commodities must carry with them CO2 allowances.
The two live political options appear to be the output-based updating allocation mechanism in the Waxman-Markey legislation and the import allowance requirement, typically associated with the former Lieberman-Warner bill.
One alternative approach is an import allowance requirement, whereby imports of highly carbon-intensive goods (in terms of their manufacture) must hold allowances for the U.S. cap-and-trade system, mirroring requirements on U.S. sources, if those imports come from countries which have not taken comparable climate policy actions.
Also, it should be noted that this approach of import-allowance-requirements is included as a long-term backstop in Waxman-Markey if the president determines by 2022 that the output-based allocation mechanism is insufficient for some of the energy-intensive trade-sensitive sectors (and if a number of stringent conditions are met; see the "International Reserve Allowance Program" in the bill).
