98eef080_r_Climate_and_Energy_Solutions__Expansion
[Policy] Performance Standard (rate-based, tradable) [Innovation] Yes - firms have incentive to innovate to reduce emissions and avoid buying allowances (or to have more excess allowances to sell). [Compliance Cost Certainty] No - difficult for policymakers to foresee trading prices based on sector-wide marginal compliance costs. [Environmental Certainty] Some - a rate-based standard determines the emission-intensity of output; but total emissions will vary with output. [Linkability] Yes - resulting “carbon price” could theoretically be linked to other trading programs. [Revenue Recycling] No [Expansion] 
No - difficult to expand beyond initial sector.
Market Mechanisms: Understanding the Options | Center for Climate and Energy Solutions
Expansion