One session early in the Semester will discuss cap and trade. Here is some literature.

• Paper about good cap (and trade) policies.
• Two-page EPA leaflet about Cap and Trade.
• Two-page leaflet The Case against Carbon Trading by Rising Tide
• Larry Lohmann, Carbon Trading: A Critical Conversation on Climate Change, Privatisation and Power, Development Dialogue 48, published by the Dag Hammarskold Centre, Uppsala, Sweden, in cooperation with The Corner House, UK. This highly readable book-length report can be downloaded here or here (6.4 MB).
• As background to Lohmann's book you should read the following article about Coase's theorem: The World According to Coase by David Friedman
• Downloadable book-length pdf Carbon Free and Nuclear Free
• Economist Gregory Mankiw wrote a New York Times Editorial in favor of carbon taxes rather than cap and trade
• Yale Econ Professor William D Nordhaus wrote Life After Kyoto: Alternative Approaches to Global Warming Policies in 2005.
• Another Nordhaus article discussing the conditions under which price controls are better than quantity controls.
• NYC Mayor Bloomberg comes out in favor of Carbon Tax.
• Rep. John Dingell (D-Michigan) is introducing a revenue neutral carbon tax bill.
• In December 2007, the European Management Journal will publish a special issue about business, climate change and emissions trading. Some articles are already available on the journal website.
• The December 2007 Scientific American will have a detailed article whose title Making Carbon Markets Work does not quite fit since the article is critical of the market in carbon permits altogether.
• The Carbon Tax Center has good info about the debate between carbon taxes and cap and trade.
• The October 2007 National Geographic has article Carbon's New Math
• In June 2007, the American Enterprise Institute published an critical article Climate Change: Caps vs. Taxes (easier to read as pdf).
• www.openeurope.org.uk/research/etsp2.pdf is a strongly-worded new report on the present and future failure of the EU Emissions Trading Scheme. The report, by an outfit called Open Europe, should be handled with caution -- it was produced by an anti-EU, business-oriented think tank pushing more "economic liberalization". But it does contain useful information and analysis.
• Jody Freeman and Charles D. Kolstad (editors), Moving to Markets in Environmental Regulation, Oxford University Press 2007, Amazon
• Thomas H. Tietenberg, Emissions Trading: Principles and Practice, Second edition, RFF Press (Resources for the Future) 2007, Washington DC. Amazon
• Ricardo Bayon (Author), Amanda Hawn (Author), Katherine Hamilton (Author), Al Gore (Foreword) Voluntary Carbon Markets: An International Business Guide to What They Are and How They Work Earthscan 2007, Amazon