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I would leave transportation out of the cap and trade system. Why legislate what is inevitable anyway? The price of petroleum, gasoline, diesel fuel and jet fuel are going to soar in the coming years because we haven't had intelligent energy policy for decades. Let our previous stupidity and myopia drive the price higher for the foreseeable future.
While we should not interfere with the rising price of oil, we should cap total oil consumption and disperse oil-buying credits equitably to the population at large. People should be able to sell the credits on the market as a reward for conservation.
The alternative, to simply expose rich and poor alike to soaring fuel prices, condemns the poor who have the least margin to cut in fuel consumption. The poor have always been the best conservationists and should be rewarded for that conservation. The wealthy wasters should have to buy credits FROM the poor to fuel their evil Hummers.
