From Green Inc (the NYTimes environmental/energy/business blog):
President Barack Obama is about to unveil his budget proposal, as my colleagues Jackie Calmes and Robert Pear report
today. For environmentalists and the energy industry, perhaps the most
notable feature is that the 2012 projections include revenues from a
source that does not yet exist: a carbon dioxide cap-and-trade system.
...
...
Revenues from a national cap-and-trade system would presumably accrue when the government auctions off, to various industries, the permits to pollute.
With that, I'll pull one of my previous comments up to this post. A simple proposal for those who want 100% auctioning of permits:
Give away 90% in year 1. Auction 10% to lube the market.
Give away 80% in year 2. Auction 20%.
Continue, until we get 100% auction (8 years hence).
Gives time for evil polluters to adjust, time for the market to get going and the gov't gets its piece eventually.
I think it could work.
And, Mr. President, please spell my name right (Haab not Habb) when writing my scheme into the legislation.
Thanks.