Despite this fundamental reality [that climate change should be addressed at the international level], there can still be a valuable role for sub-national climate policies .... This is particularly true when appropriate national policies fail to materialize. The failure of the U.S. Senate to pass companion legislation to the Waxman-Markey bill, passed by the U.S. House of Representatives in June, 2009, highlighted the absence of a national, economy-wide carbon pricing policy.
Recently, another argument has arisen for the importance of California’s climate policy, namely its potential precedent and lessons for other jurisdictions around the world, including other states, provinces, countries, and regions. ...The California Air Resources Board has done a remarkable job in its initial design of the rules for its path-breaking GHG cap-and-trade system. That’s not to say that it is perfect, or that it could be perfect. There will inevitably be unanticipated challenges that will arise, whether from complying firms, from the broader economy, from litigation, or from other legislation. The goal at this stage should be to design a system that is reasonably robust to such unanticipated shocks.
The snip deletes Stavin's detailed discussion of:
- the GHG allowance reserve
- allowance holding limits
A sharper tack would summarize these issues for you in a few sentences. Sigh.