Full Title: Climate Policy Memo #1:­ Cap and Trade v Taxes
Author(s): Pew Center on Global Climate Change
Publisher(s): Pew Center on Global Climate Change
Publication Date: 3/2009


Cap and trade and a carbon tax are two distinct policies aimed at reducing greenhouse gas (GHG) emissions. Each approach has its vocal supporters.  Those in favor of cap and trade argue that it is the only approach that can guarantee that an environmental objective will be achieved, has been shown to effectively work to protect the environment at lower than expected costs, and is politically more attractive.  Those supporting a carbon tax argue that it is a better approach because it is transparent, minimizes tmanipulation. This note explores botimportant differences between them.