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ANTHROPOLOGY OF AN IDEA
"Cap and trade" began not as a catchphrase, but as a simple concept: that the market could help curb pollution. Its roots date to the 1960s, when U.S. government scientists came up with a scheme for regulating sulfur dioxide emissions through setting a cap and then trading the right to emit over the limit. By the 1970s, environmentalists - and their politician allies - embraced the concept, and it became standard in regulatory legislation. Now, as climate change makes the regulation of carbon emissions crucial, cap and trade may be more necessary than ever, if global wrangling doesn't do it in first. - Elizabeth Dickinson
1967
Ellison Burton and William Sanjour. two computer modelers for the U.S. National Air Pollution Control Administration, imagine cap and trade (though not the term) as a way to cut down sulfur dioxide emissions from power plants.
1968
University of Toronto economist John Dales publishes PoHubon, Property and Prices, proposing an intellectual framework for emissions trading....