Common Tragedies

Thoughts on Environmental Economics

Cap-and-Rebate

Posted by Rich Sweeney on December 14, 2007

SolveClimate has as a very introductory piece on cap-and-trade that poses an idea that is somewhat new to me. It’s called cap-and-rebate, and was put forth in Capping Carbon: A Citizen’s Guide by Peter Barnes. Basically, the idea is that the government would create a standalone trust in the name of the American people, and then allocate permits to the fund. The fund would then auction them off and distribute the revenue equally. At first glance this seemed like just a special case of what Barnes calls cap and auction. But now that I think about it this rebate idea may have some important legal and political properties (think Social Security lock box).

Anyways the website, SolveClimate, covers a lot of climate change news from a more journalistic approach.

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