Download or read book Equity and Efficiency in Cap-and-trade written by and published by . This book was released on 2009 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper considers the distributional effects of cap-and-trade across different sets of people, including consumers, shareholders, household income groups, and geographic regions, and it explores the role of policy design in determining those effects. The paper describes how the incidence of the program depends on how market forces transmit the costs of emissions abatement through the economy and how the program can create large transfers from one group to another, especially through the way the government doles out allowances. Finally, it explains how the allocation of allowances can lower or raise the overall costs to the economy by reducing other economic distortions or by inducing higher-cost abatement. -- Intro (p.1).