Be sure to check out the latest article by Professor Lisa Heinzerling, which reviews a recent book by Richard Posner:

A new article by CPR member scholar David Driesen questions the conventional theory purporting to establish that environmental benefit trading encourages innovation better than comparable traditional regulation. Here's a look at the abstract:

According to the New York Times, EPA has withheld a report showing that due to loopholes in fuel efficiency standards, manufacturers have been allowed to produce cars that, on average, are significantly less fuel efficient than cars sold in the late 1980s. The loopholes give car manufacturers credits towards their fuel economy standards if they produce dual-fuel cars in their fleet—those that can run on both ethanol blend and gasoline. The credit then allows the manufacturers to add more inefficient cars such as SUVs and trucks to their fleet.