Shelly Sullivan has a piece, Cap-and-trade is not a budget solution, in Capital Weekly.  It’s well worth reading.  She’s correct, of course, but she fails to mention a key p0int:

When most economists support cap-and-trade schemes,  the point is to use the proceeds to offset existing discretionary taxes.  That would minimize the economic costs of the regulation.  California’s proposal, on the other hand, just leaves the Golden State a little more tarnished.