Scope of a greenhouse gas cap-and-trade program

This report describes issues involved in choosing the set of greenhouse gases (GHGs), emission sources, and sectors of the economy included in a cap-and-trade program. Trade-offs between three primary criteria determine whether a source should be included in a cap-and-trade program: broader coverage, measurability of emissions, and ease of administration. Policymakers also face choices in determining which entity in each sector must hold allowances at the conclusion of each compliance period (the point of regulation)