> Giving the credits to incumbents is a large barrier to entry for competitors and a give away. If you are going to have credits rather than a tax, the credits

> Giving the credits to incumbents is a large barrier to entry for competitors and a give away. If you are going to have credits rather than a tax, the credits should be auctioned. Sure, but that's not an inherent feature of cap and trade. The only reason why most current proposals include this is because it's the only way the legislation has a realistic chance of passing. And there is at least a decent justification for it, in that it reduces any initial financial impacts, and then still transitions into a full auction over a few years.