Comment Log Display

CARB is evaluating carbon fees as an alternative to cap-and-trade,
but disfavors carbon fees on the grounds that "they provide less
certainty in California�s ability to meet specific emission
targets, as required under AB 32" (Draft Plan, page 42). However,
carbon fees and cap-and-trade are neither mutually exclusive nor
incompatible policy options. A carbon fee would provide greater
certainty of meeting California�s AB 32 goal, and could
incentivize early action in advance of post-2020 regulations, if
it is implemented as a price floor in the context of cap-and-trade
(i.e., as a reservation price in an allowance auction).
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