Cap and Trade Revenue
After enactment of the Budget, the Administration will work expeditiously with key stakeholders and Congress to develop an economy-wide emissions reduction program to reduce greenhouse gas emissions approximately 14 percent below 2005 levels by 2020....
I wonder what their economic assumptions are here? Here's the revenue timeline, starting in 2012:

At first glance, this strikes me as odd. With only slight variations, it assumes $80 billion in revenue every year between 2012 and 2019. But that doesn't really make sense. What you normally expect with a carbon trading program is that you begin with a high cap (carbon emissions in 2012 will probably start out 10% higher than 2005 emissions) and then ratchet the cap down every year after that. As the cap goes down, the price of permits goes up. It's true that the number of permits goes down at the same time, but this shouldn't be enough to make up for the higher permit price. Overall, until the green technology buildout hits a critical mass, the revenue from the program should go up considerably over time.
But not in this one. I wonder why?
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Comments
cap and trade revenue
Perhaps Obama wanted to give
NRDC thoughts
I think it is merely taking
Revenue -or spending?
revenue projections
They're just being prudent
x333
I would think, from a
I would think, from a political standpoint, it also makes sense to not use cap and trade in the budget as a "magic asterisk" to fill a budgetary hole. You don't want anyone accusing you of creating cap and trade primarily as an automatically increasing tax.tiffany jewelry
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