How To Do Cap-And-Trade

National Journal Online (May 5 2009) Cap and Trade , Carbon Tax , Emissions

1. The prospects for legislation to limit emissions of greenhouse gases are still uncertain. The American Clean Energy and Security Act, introduced by Reps. Henry Waxman, D-Calif., and Edward Markey, D-Mass., has encountered not just the expected hostility from House Republicans but doubts among Democrats as well. Changes are likely, and Waxman, chairman of the House Energy and Commerce Committee, moved to delay panel consideration this week. The full House seems certain to pass a version in the end, but its chances in the Senate are then much in doubt. The core of the House bill is a cap-and-trade system. The basic idea is to issue permits for emissions, with the total capped at a level that comes down over time. Holders of the permits can sell them. The owner will sell if the market value of the permit is greater than its worth to him. The result is that emissions ... (Read Full Article)

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