Cap And Trade’s Creators: Cap And Trade Can’t Solve Global Warming

Conn Carroll /

The Wall Street Journal tracks down three of the economists who originally helped come up with the idea of cap and trade and finds that all three do not believe the system can be used to stop global warming. Then University of Wisconsin graduate student and now University of Wyoming professor outlines two problems with carbon cap and trade:

The first is that carbon emissions are a global problem with myriad sources. Cap-and-trade, he says, is better suited for discrete, local pollution problems. “It is not clear to me how you would enforce a permit system internationally,” he says. “There are no institutions right now that have that power.”

Europe has embraced cap-and-trade rules. Emissions initially rose there because industries were given more permits than they needed, and regulators have since tightened the caps. Meanwhile China, India and other developing markets are reluctant to go along, fearing limits would curb their growth. If they don’t participate, there is little assurance that global carbon emissions will slow much even if the U.S. goes forward with its own plan. And even if everyone signs up, Mr. Crocker says, it isn’t clear the limits will be properly enforced across nations and industries. (more…)