Debate on cap-and-trade structure could affect the climate bill

12/3/2009 |

Advocates of a cap-and-trade structure to contain greenhouse gases say financial reform is necessary to enact regulations for a carbon trading market. Sen. Maria Cantwell, D-Wash., however, said the workings of the complicated derivatives market could push lawmakers to seek a more streamlined approach such as "cap and dividend," which would auction most carbon permits and return the revenue to taxpayers. A U.S. Climate Task Force poll found that while most voters know little of "cap and trade" or "cap and dividend," when the concepts were explained to them, 66% of Democrats, 58% of independents and 46% of Republicans were in favor of a cap-and-dividend system.

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