With the American Clean Energy and Security Act making its way to the Senate after a narrow victory in the House, the fate of our relationship with carbon dioxide may soon be decided.
Of the various ways the bill looks to change the nature of how to deal with carbon emissions, cap-and-trade will form the basic structure if the landmark legislation is passed. In essence, the cap-and-trade system will distribute permits to pollute—at no cost initially—to any company that emits carbon dioxide (the cap).