The Economist reports the following on the latest "cap and trade" proposals in the U.S.:
On May 15th Henry Waxman and Edward Markey, the Democratic point-men on climate change in the House of Representatives, unveiled a bill that would give away 85% of carbon permits for nothing, with only 15% being auctioned.
From a trade perspective, perhaps this is good news: If the costs on domestic producers are going to be so low, it may not be necessary to impose carbon tariffs on imports to equalize the burden!
