IHS Chemical Week

People & Business :: Green Issues

Beyond Cap-and-Trade?

Part Two: Economic Costs Could Be High

12:21 PM MST | February 10, 2010 | Vincent Valk

This is part two of a three-part web series on the implications of cap-and-trade's potential failure in the U.S. Part one, which focuses on legal issues, can be found here. Part three, which will appear Friday, will focus on legislative and political issues. Economically, the costs of CAA regulation are unclear. However, economic costs would very likely be higher than those under cap-and-trade, Morris says. "There is a broad consensus amongst economists that it [Clean Air Act] is an inefficient way to control GHGs," Morris says. Brookings estimates that...

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