AI Cap-and-Trade: Efficiency Incentives for Accessibility and Sustainability
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Abstract (arXiv)
The race for artificial intelligence (AI) dominance often prioritizes scale over efficiency. Hyper-scaling is the common industry approach: larger models, more data, and as many computational resources as possible. Using more resources is a simpler path to improved AI performance. Thus, efficiency has been de-emphasized. Consequently, the need for costly computational resources has marginalized academics and smaller companies. Simultaneously, increased energy expenditure, due to growing AI use, has led to mounting environmental costs. In response to accessibility and sustainability concerns, we argue for research into, and implementation of, market-based methods that incentivize AI efficiency. We believe that incentivizing efficient operations and approaches will reduce emissions while opening new opportunities for academics and smaller companies. As a call to action, we propose a cap-and-trade system for AI. Our system provably reduces computations for AI deployment, thereby lowering emissions and monetizing efficiency to the benefit of academics and smaller companies.
Key facts. No citing papers in the map yet (data through 14 Oct 2026). Builds on 15 of its 90 references that are in the map. First posted on arXiv 27 Jan 2026.
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15 of 90 references.
References · 15
- 2020Scaling Laws for Neural Language Modelscited by 6,586
- 2024DeepSeekMoE: Towards Ultimate Expert Specialization in Mixture-of-Experts Language Modelscited by 867
- 2025DeepSeek-V3.2: Pushing the Frontier of Open Large Language Modelscited by 815
- 2024WildChat: 1M ChatGPT Interaction Logs in the Wildcited by 629
- 2021Carbon Emissions and Large Neural Network Trainingcited by 567
- 2025How Hungry is AI? Benchmarking Energy, Water, and Carbon Footprint of LLM Inferencecited by 76
- 2025Artificial Intelligence Index Report 2025cited by 64
- 2025Measuring the environmental impact of delivering AI at Google Scalecited by 32
- 2025Distributional AGI Safetycited by 12
- 2025Pitfalls of Evidence-Based AI Policycited by 11
- 2025Life-Cycle Emissions of AI Hardware: A Cradle-To-Grave Approach and Generational Trendscited by 10
- 2025AI Governance through Marketscited by 5
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