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	<title>Sightline InstituteCap and Trade: Grandfathering Still Sucks - Sightline Institute</title>
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		<title>Cap and Trade:  Grandfathering Still Sucks</title>
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		<pubDate>Tue, 13 May 2008 18:30:00 +0000</pubDate>
		<description><![CDATA[Let's hope the press gets the memo. | &nbsp;Kevin Drum takes a crack at explaining the woes of &#8220;grandfathering&#8221;, and nails it: If you give away permits [under a cap and trade system], common sense suggests that since there are no additional costs to emitters, they won&#8217;t raise their prices. But it turns out this isn&#8217;t true. Thanks to the opportunity cost of the permits, they&#8217;ll raise their prices just as much as if they&#8217;d bought the permit...]]></description>
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