- There are no first-order differences between the two incentive-based policy instruments [read this for details].
- The gains from going to command-and-control policy to incentive-based policy is large relative to the mostly geeky relative second-order advantages/disadvantages in the carbon tax vs. cap-and-trade debate [I'm feeling too lazy and time-constrained to provide a reference, feel free to debate the evidence in the comments section].
- Once you start choosing one incentive-based policy instrument over another (outside academic journals), and believe that you must be right [sometimes at all costs], well, it just gets ugly fast (e.g., Climate Fight) and is likely counterproductive in terms of achieving incentive-based policy over command-and-control.
- Tim looks great in his Cap'n Trade outfit.