The reward for taking leadership in pricing carbon will be the ability to create environmentally effective and cost effective pricing policies, as opposed to having to adopt the possibly ineffective or costly policies of others. [...] In theory, a uniform carbon price will stimulate the least cost reduc- tions across all covered sources of emissions, thereby reducing the overall cost of emission reductions to society—a virtue given the large scale and the pervasiveness of cuts needed. [...] The discussion of carbon pricing is further complicated by popular misunderstandings about the potential application of each approach: for example, that a cap and trade system can only be applied to large final emitters; that permits will be free, not auctioned, under a cap and trade system; that international linkages can only be achieved through a cap and trade system; or that a carbon tax will [...] A common price across the country will enable us to meet our international obligations at the most cost effective price, and will also support the economic and social union of the country. [...] The carbon price itself should be: 6. Environmentally effective: The carbon price, and future price schedule, should be set at a level sufficiently strin- gent that, based on the scope of emissions covered and supported by complementary policies, it will demonstra- bly achieve the jurisdiction’s specified interim and long term emissions reduction targets.