The headline of this post is not meant to be ironic. Despite all the hand-wringing in the press and the blogosphere about a political "give-away" of allowances for the cap-and-trade system in the Waxman-Markey bill voted out of committee last week, the politics of cap-and-trade systems are truly quite wonderful, which is why these systems have been used, and used successfully.
The Waxman-Markey allocation of allowances has its problems, which I will get to, but before noting those...
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