First off I must give credit where it is due. I was surprised to see both Hillary and Obama propose a cap and trade whereby permits are auctioned off instead of allocated. As such they have both offered substantive climate change proposals. Frankly, I am surprised the press hasn't given this part of their proposals more publicity.
Now, on to my disappointment. Both Hillary and Obama have already gestured towards having one massive pork orgy with the proceeds from permit auction. It seems biofuels and liquified coal will be getting lots of handouts, not to mention other various and sundry renewable energies. I would have much preferred a revenue neutral proposal which dedicated revenues towards relieving lower income folks of their payroll tax burden (thus mitigating the impact of higher energy prices caused by a cap and trade and taxing something bad-consumption- instead of something-good- work). Further, once you have priced in the externalities caused by carbon emissions, whether by cap and trade or a carbon tax, the claim for subsidizing other energy forms is not compelling. In a sense other forms of energy are already receiving a subsidy in the form of not being subject to the carbon tax or cap on emissions.