Carbon Auction Starts Today

In the first of its kind (in the U.S.), 10 Northeast States will initiate their cap-and-trade program by auctioning off carbon allowances. A few other regions (midwest and western?) have some plans in the works too - and Congress has had several plans bouncing around for years. The good news is that this is an auction - making polluters pay - which gives industry incentive to cut their current pollution, allows them to pass on the costs, and generates a ton of revenue for the states. This is preferrable to how Europe did it by giving away allowances, causing a windfall for industry. All eyes are on how this goes.

A carbon tax is still probably the best way - environmentally, economically, and bureaucratically - but it's almost a political non-starter. Too bad.