The problem with the cap-and-trade schemes advocated by economists who know how to do a Monte Carlo analysis just well enough to be wrong is that the real world never matches up.
Europeans, who boldly venture into every anti-science idea that more reasonable regions avoid, is now scrambling not to kill its economy even more due to its mandated cap-and-trade program.
A record glut of permits in Europe's cap-and-trade market - thanks to their deft handling of the economy, there is no industry there, just like we have emulated in the US - keeps investors from having to participate in national auctions. In other words, Europe is practically emissions-free, just like they said they wanted. And they now discover that is really, really bad. In case you are still of the adorable optimistic belief that cap-and-trade is about saving the planet, rest assured that when government is not getting its money, the rules will get 'fixed' again.
European industry, prepare to get 'backloaded'.
EU’s Record Carbon Glut Poses Risk for Auctions By Ewa Krukowska&Alessandro Vitelli, Bloomberg
The Downside To Cap-And-Trade For Carbon
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