Well their competitors are benefiting from unpriced externalities. I could also say "Another quarter, another profit for Toyota ex-externalities". They're also

Well their competitors are benefiting from unpriced externalities. I could also say "Another quarter, another profit for Toyota ex-externalities". They're also going to optimise their pricing around the existence of credits. The pricing that maximises the equation margin*volume will differ with and without credits. Ideally we do away with the credits and get straight to the point by taxing carbon directly.