This article examines the consequences of a previously unnoticed difference between pollutant cap-and-trade and pollution taxes. Implementation of cap-and-trade relies on a forecast of future emissions, implementation of a pollution tax does not. Realistic policy designs using either regulatory...

The world needs a new approach to achieving international progress on climate change. Despite prodigious diplomatic efforts over two decades aimed at limiting emissions of climate change pollutants, relatively little in the way of effective global governance has been achieved. In Part 1, I argue...