It’s similar in some ways, but very different in practice. I don’t study these things, but my understanding is that cap & trade puts a hard limit on emissions,

It’s similar in some ways, but very different in practice. I don’t study these things, but my understanding is that cap & trade puts a hard limit on emissions, then allows businesses to trade carbon allowance as a new sort of currency. Carbon tax + dividend doesn’t put a hard limit, and it doesn’t establish a new currency/market. Instead, emissions are taxed at the business level and that revenue is paid out at the individual level. I like the way it plays to the strengths of our existing capitalistic system. It’s easy to ratchet up the taxes without affecting the little guy—even benefitting them. It seems easier to administer too.