Addressing climate change with a comprehensive US cap-and-trade system

Robert N. Stavins presents an up-stream, economy-wide CO2 cap-and-trade system, divided between allowances and free distributions, with the latter being auctioned gradually to increase to 100 per cent over 25 years. The system provides for linkage with emission-reduction credit projects in other countries, harmonization over time with effective cap-and-trade systems in other regions, and establishes a level playing field among domestically produced and imported products.