Washington wants to join California and Quebec’s cap-and-trade alliance with the idea that a bigger market will keep allowance auction prices (and gasoline prices) down. The idea would take some additional coordination, since they would need to have parallel systems and Washington would need to make the adjustments. A recent Washington Ecology Department preliminary analysis concluded the proposed linkage would likely improve the cap-and-invest program’s economic durability, longevity and efficacy. “In a larger, more liquid market with a greater number of participants, allowance prices would likely be lower and change more predictably. Predictable prices can foster greater investments in decarbonization,” the report said.
However, the Republicans’ Dye argues that it
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