Based on the conversations I have heard about the American approach, it would seem they favour the tradable permit approach. It is certainly possible to opt for a carbon tax, call it what you will. These two measures will have similar effects in some regards, but different in others. It would seem to me that the idea of removing certain tools from our toolbox without first considering them is not a good idea. We know that in general, this type of measure compared to others would lead to lower emission reduction costs. All of these options have to be considered to ensure that emissions reduction is done at a reasonable cost.
On November 26th, 2009. See this statement in context.