The Political Economy of Carbon Trading
Donald MacKenzie: A Ratchet, 5 April 2007
“... Air Act Amendments of 1990, which introduced sulphur dioxide trading. Economists such as MIT’s Richard Schmalensee and Robert Stavins of Harvard’s Kennedy School also became involved. They didn’t simply advocate a cap and trade scheme, but helped it gain political acceptance. The 1990 legislation differed from what economists might have wanted in two ... ”