The cap-and-trade credits that the California government expected to sell for a hefty profit sank like a stone. When the California Resources Board held its first auction of the credits late last month, they projected an ultimate $1 billion profit.

Missed it bythatmuch. The legislative Analyst’s Office thinks that if the auctions in February and May are as enormously successful as the first one, the state should bring in –drum roll, please –$140 million.


But, environmentalists cry, this was supposed to work! The plan was to punish companies that polluted the air with greenhouse gases by forcing them either to buy credits or cut back production.

Continue reading on