http://online.wsj.com/article/SB125011380094927137.html
The most unlikely critics of Cap and Trade are its creators. They are in favor of the Carbon Tax because they believe it would be more effective and flexible. I agree, and not just because the creators think the tax is better. The primary reason is that Cap and Trade has the potential to pay polluters once they drop below the cap. There are many things wrong with Cap and Trade for CO2, but incentives for reducing emissions under Cap and Trade fall off much faster than they do with a Carbon Tax.
Update: Found this article talking about how in the Senate version of the Climate Bill, many of the earlier Carbon permits will be free to “help in the transition.” That is precisely what we DON’T want. If there is not pain, there will be no incentive to clean up.
