Not All Cap and Trade Is Created Equal

摘要

Cap and trade talk is all the rage in Washington, D.C. these days; but how should it work, does it work and will it work under the proposed climate change bill?rnThe basic premise behind cap and trade is that a line is drawn at a historical emissions tonnage level, which is then made the ceilingrnfor all future emissions. Emissions below the ceiling become "allowances" and are traded like any other commodity. Over time the ceiling is lowered and fewer allowances are available.