Cap-and-trade is losing some of its luster among Congressional Democrats who are involved in crafting legislation to address greenhouse gas emissions, according to reports.
Cap-and-trade’s ability to drive down emissons–especially during economic downturn–has been criticized by experts over the last several years.
An alternative cap-and-dividend approach appears to be drawing serious consideration. Such a system, is essentially a carbon tax, which experts recommend is the most efficient, least complicated way to draw down emissons levels.
Emissions would be "capped" and industry would be required to purchase emissions permits. Trading of these permits would be limited, thus reducing the potential for market manipulation and a repeat of the current financial fiasco.
The "dividend" would return the money raised from the sale of emission to taxpayers, thus reducing the burden of increased energy prices.
Read about who is supporting cap-and-dividend in the McClatchy report below.
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