Past Failures Shape Future Cap-And-Trade Scheme

Law360, New York (March 9, 2009, 12:00 AM EDT) -- As the United States prepares to implement a cap-and-trade scheme to fight global warming, it is looking both to its own history and to Europe to overcome residual resistance and avoid duplicating past mistakes.

The most notable failure in the European system can be traced to over-allocating allowances in the early stages of compliance, which caused a crash in the price of carbon, according to experts. And while the largest U.S. cap-and-trade program to date – designed to curb acid rain – is generally considered a...
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