[fulafel]

This same conceptual problem also exists in oil/gas use - unless we ramp down successfully ramp them down everywhere, they will be dug up and burned, while regulation just changes where and how.

But this legislation has other more important effects the immediate ones - it's a symbolic act that opens the door for more similar legislation. And eliminating sectors of emissions will make room in the ETS system for more essential uses, decreasing prices in other sectors.

[wcoenen]

> eliminating sectors of emissions will make room in the ETS system for more essential uses

I'm worried it might make room for less essential uses. Each buyer removed from the market, lowers the market price. So it will bring back the buyers that were previously priced out.

Yes, this does presume that the maximum price a buyer is willing to pay, corresponds to how "essential" their use is. But I guess that's the premise of ETS.