Lots of discussion on Cap & Trade vs. a Carbon Tax. Latest is here
I prefer a carbon tax, for a lot of reasons: a) No one will be sad if it goes away. b) It is hard to create exemptions.
But, given what I know of politics, politicians and modern life, Cap and Trade will win. why?
a) Because it allows corrupt politicians to take advantage of it to hand out favors.
b) Because it creates a permanent new bureaucracy.
c) Because it lets the companies with “pull” get carbon credits cheaply and make massive piles of money selling them to companies without pull
d) Because it gives lobbyists something else to advocate for and against with their customers