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These include an effective budget procedure where spending is rationally allocated, permitting public needs to be addressed efficiently.
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In the European union, factories and other installations whose smoke stacks spew carbon dioxide into the atmosphere must either acquire or be allocated permits each year equivalent to the amount they emit.
It would likely be more transparent to users than mechanisms that allocate permits based on complex regulatory criteria, though it would require more ongoing management.
How much do allocated permits cost?
Under the scheme, essentially a cap-and-trade system, airlines will be given an emissions ceiling and allocated permits.
Airlines will be given a ceiling and allocated permits; they will have to buy additional permits only if they exceed the cap.
Under the European Trading System, companies are allocated permits or can buy them at auction, with each permit allowing for the emission of one ton of carbon dioxide each year.
New analysis from energy advisory firm RepuTex warns that the government could be facing a $2bn bill if companies rush to cash in their freely allocated permits before the carbon price is repealed.
"Should the (carbon price) be disbanded from end of September 2014, Reputex notes that the government can expect companies to utilise the buy-back facility before the permits become worthless, with government facing a bill in excess of A$2bn to cash in nearly 87m freely allocated permits," Reputex said.
Entergy, one of the companies that brought the case to court, emphasized on Friday that it did not want the whole rule thrown out and that it had challenged only the part that allocated permits for emissions of pollutants around the industry.
Some of the allocated permits will go to utility companies, the idea being that they will either invest the proceeds in renewable fuels or temper price increases for consumers.
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