In January 2003, Senators John McCain (R-AZ) and Joseph Lieberman (D-CT) introduced legislation to cap and trade emissions of greenhouse gases, the precursor to global climate change. Their approach is based on a broad, flexible trading framework, and represents one of the most significant domestic proposals to date in the arena of climate change policy.

RFF Senior Fellows Ray Kopp and Billy Pizer take a look at the McCain-Lieberman proposal, summarize its main features, contrast it with other proposals, and construct rough estimates of the magnitude of its overall economic costs.

Summary and Analysis of McCain-Lieberman – "Climate Stewardship Act of 2003" S.139