Green Cool-Aid has taken a look at the Western Climate Initiative’s cap and trade initiative documentation and finds a promise of $11 to $22 billion in savings from this program that makes carbon more expensive. Hmm . . . cap-and-trade is a net economic benefit. Who knew?

Looking further, Ivin finds three big fat assumptions about C02 reductions that are expected to occur and that don’t seem to have any reported costs associated with their implementation.

The complementary policies have a substantial impact on the estimated emissions and costs. This analysis incorporates three broad sets of policies across all eight WCI partner jurisdictions in the analysis:
Clean Car Standards, equivalent to California’s Pavley I and II. These standards reduce emissions by about 30 MMTCO2E [Million Tons of CO2 Equivalents] in 2020 compared to the Reference Case.Programs that reduce total Vehicle Miles Traveled (VMT) by 2% from the forecast reference case by 2020. These programs reduce emissions by about 4 MMTCO2E when considered in addition to the Clean Car Standards. Aggressive energy efficiency programs that achieve a 1% reduction in the annual rate of electricity and natural gas demand growth. These programs reduce emissions by about 74 MMTCO2E in 2020 across all sectors.

Ivin will be staying on the case.

[UPDATE: Ivin has more.]