quoted from: http://www.nytimes.com/2009/12/07/opinion/07hansen.html

If that isn’t bad enough, Wall Street is poised to make billions of dollars in the “trade” part of cap-and-trade. The market for trading permits to emit carbon appears likely to be loosely regulated, to be open to speculators and to include derivatives. All the profits of this pollution trading system would be extracted from the public via increased energy prices.

There is a better alternative, one that would be more efficient and less costly than cap and trade: “fee and dividend.” Under this approach, a gradually rising carbon fee would be collected at the mine or port of entry for each fossil fuel (coal, oil and gas). The fee would be uniform, a certain number of dollars per ton of carbon dioxide in the fuel. The public would not directly pay any fee, but the price of goods would rise in proportion to how much carbon-emitting fuel is used in their production.