Economic theory suggests that pollution tax and cap-and-trade regulations can be functionally equivalent. Environmentalists tend to prefer the firm emissions cap in cap-and-trade programs, while economists and business interests tend to prefer the price certainty of tax programs. But both may be overlooking behavioral distinctions between the two policies. Using a novel randomized case experiment, this Article tests whether the framing changes negotiated policies.

This Comment takes up two recent conflicting developments: the U.S. Supreme Court’s decision in West Virginia v. Environmental Protection Agency, which was designed to undercut present and future federal climate action, and Congress’ surprising countermove passing climate legislation in the form of the Inflation Reduction Act, which has dramatically accelerated development of the rule of law around climate change in the United States.