Carbon Tax vs. Cap and Trade

Congressional debate on climate change has revealed division among politicians on how to best regulate carbon emissions. From NPR's Marketplace, we get a report on the sharp difference between leading Democrats in both houses, Sen. Barbara Boxer (CA) and Rep. John Dingell (MI)

Boxer is quoted as preferring cap and trade, which seems to be most favored among politicians and big corporations as a way to leverage market forces to address climate change.

Dingell, however, favors a carbon tax as a more direct, visible and predictable means of reducing carbon emissions. He says,

The Carbon Tax Center has a page that explains why it thinks a carbon tax is the way to go. CTC co-director and Streetsblog contributor Charles Komanoff recently published a piece in favor of a carbon tax over at Gristmill. On the other side of the issue is the US Climate Change Action
Partnership, a group of major corporations and environmental
organizations in favor of a cap and trade system. Environmental Defense chief scientist Bill Chameides, wrote a piece in Gristmill as well laying out the case for a cap and trade system.

The debate between Carbon Tax and Cap and Trade is an important one that could lead to new federal legislation by the end of the year.

(Editor's note: Why do I always want to write it, "Cap'n Trade?")