Number: RL34502
Title: Emission Allowance Allocation in a Cap-and-Trade Program: Options and Considerations
Authors: Jonathan L. Ramseur, Resources, Science, and Industry Division 
Abstract: The first two sections of this report discuss the primary emission allowance distribution methods: auctions and no-cost distribution to covered sources. These sections examine the potential benefits and concerns of these allocation mechanisms. The final section identifies different options and policy considerations for Congress when determining to whom and for what purpose to distribute the value of the emission allowances. The allocation strategy would have substantial consequences for the cost of the cap-and-trade program and how the costs are apportioned.
Pages: 29
Date: June 2, 2008