Jul 17, 2008

Why cap and trade would backfire

Claims that capping greenhouse-gas emissions and creating a market for emissions trading – a policy prescription called "cap-and-trade" – would reduce carbon dioxide output and with it the risk of global warming. But it could achieve the opposite. Here's how: By turning carbon emissions into commodities that can be bought and sold, cap-and-trade policies could remove the stigma from producing such emissions. In the late 1990s, Israeli ... Link