Prof. Robert Stavins has contributed greatly to the evolution of environmental policy. He's pioneered new instruments for achieving environmental progress and improved the effectiveness of traditional tools. This paper is no exception. Here, Dr. Stavins offers compelling counsel on how best to structure a cap-and-trade policy to achieve reductions in greenhouse gas pollution.

Several points in Dr. Stavins' article bear further discussion however. Dr. Stavins notes that the effectiveness of his proposed policy could be influenced by factors such as the structure of electric markets and the generation mix in those markets. He also notes that policies to promote renewable energy and energy efficiency are potentially promising complements to a cap-and-trade policy.

However, these issues, noted only peripherally in Dr. Stavins' piece, really are central and should be elevated in the design of optimal climate change policy.