The MIT Joint Program on the Science & Policy of Global Change have long been advocates of cap-and-trade as an appropriate policy instrument to drive a reduction in national emissions. They also provide valuable insight into the economic impacts of such an instrument through the economic modelling tools they have at their disposal.
As Waxman-Markey races through Congress and might even become legislation this year, both sides of the debate are arming themselves with data to defend or attack the proposal. In recent weeks MIT have found themselves in the middle of this foray as their findings have been somewhat misquoted by those not in favour of a cap-and-trade approach in the USA.
In Rome this week the Joint Program is holding its 29th Forum and I am here for Shell as one of the program sponsors. I have had the chance to interview the originator of the MIT study, Dr. John Reilly, Associate Director for Research.