[Huxlly (OP)]

What are the potential economic impacts of a national CO2 Cap and Trade system?

[Don_1]

I suspect the cost will be borne by the individual.

Employers will tell their employees that they cannot give a wage increase, due to their obligations to reduce their 'carbon footprint' by updating equipment to the latest 'carbon friendly' models. Doubtless this will also result in a higher cost of manufactured products and services, thus the individual will suffer from income erosion.

Businesses and individuals may also be taxed higher to pay fines imposed on nations which exceed their CO₂ output allowance, or to buy additional allowance from a low output nation.