Are cap-and-trade schemes working? This column presents a summary of eight existing schemes arguing that half meet the independence property whereby the initial allocation of property rights does not affect the environmental or social outcome and the scheme is cost-effective. This success is a contrast with other policy proposals where political bargaining reduces the effectiveness and drives up cost.
Hahn, Robert and Robert Stavins. "Why cap-and-trade should (and does) have appeal to politicians." Combatting Climate Change: a CEPR Collection. Ed. Beatrice Weder di Mauro. CEPR Press, 2021, 259-264.