Is Credit for Early Action Credible Early Action?

Credit for Early Action allows firms that take early action to reduce emissions to be rewarded with credit against future regulatory standards or carbon taxes. Is Credit for Early Action an inherently flawed concept, with questionable environmental effectiveness, high economic cost, and inequitable impacts on distribution of wealth? We recommend announcement of policies to remove existing disincentives to early action, combined with the phase in of either emission limits and trading or a carbon tax