MONTREAL -- "Environmental effectiveness and minimum cost are two core building blocks for any long term modern climate policy," declared Olivia Hartridge, a representative from the Environmental Directorate of the European Commission. She was speaking on a panel on the European Union's Emissions Trading Scheme (EU ETS) at the United Nations' Climate Change conference in Montreal. The problem is that it is not at all clear the EU ETS fulfills either goal. The EU launched its new carbon dioxide trading scheme this past January as a way to begin to meet its commitments to cut greenhouse gas emissions by 8...