Once upon a time, "cap-and-trade" wasn't an object of conservative Republican opprobrium (e.g., as a "big government cap-and-tax scheme that will destroy our economy and end our way of life as we know it"). Actually, once up on a time, "cap-and-trade" was...wait for it...a conservative Republican idea! That's right, let's head to the "way back machine" and briefly review the Political History of Cap and Trade.
John B. Henry was hiking in Maine's Acadia National Park one August in the 1980s when he first heard his friend C. Boyden Gray talk about cleaning up the environment by letting people buy and sell the right to pollute. Gray, a tall, lanky heir to a tobacco fortune, was then working as a lawyer in the Reagan White House, where environmental ideas were only slightly more popular than godless Communism. "I thought he was smoking dope," recalls Henry, a Washington, D.C. entrepreneur. But if the system Gray had in mind now looks like a politically acceptable way to slow climate change-an approach being hotly debated in Congress-you could say that it got its start on the global stage on that hike up Acadia's Cadillac Mountain.
People now call that system "cap-and-trade." But back then the term of art was "emissions trading," though some people called it "morally bankrupt" or even "a license to kill." For a strange alliance of free-market Republicans and renegade environmentalists, it represented a novel approach to cleaning up the world-by working with human nature instead of against it.
Despite powerful resistance, these allies got the system adopted as national law in 1990, to control the power-plant pollutants that cause acid rain. With the help of federal bureaucrats willing to violate the cardinal rule of bureaucracy-by surrendering regulatory power to the marketplace-emissions trading would become one of the most spectacular success stories in the history of the green movement...
In the end, the conservative Republican-inspired "cap-and-trade" system for acid-rain-causing sulfur dioxide was put into place by Republican President George HW Bush, who "not only accepted the cap, he overruled his advisers' recommendation of an eight million-ton cut in annual acid rain emissions in favor of the ten million-ton cut advocated by environmentalists." And it worked incredibly well, "cost[ing] utilities just $3 billion annually, not $25 billion... [and] by cutting acid rain in half, it also generates an estimated $122 billion a year in benefits from avoided death and illness, healthier lakes and forests, and improved visibility on the Eastern Seaboard."