Kevin Drum thinks that a cap-and-trade system for controlling pollution is not worth having if you don’t auction off the permits:
There are loads of special interests who hate the idea of a 100% auction, of course. But once you start giving away permits, you’ll never stop. It is, plain and simple, a massive giveaway … makes a mockery of any serious cap-and-trade plan. …Without a 100% auction, cap-and-trade is a bad joke.
Unless you have the option of a decent tax scheme I don’t really see what his problem is. Read more