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Mark_Gomer comments on You're Entitled to Arguments, But Not (That Particular) Proof - Less Wrong
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For the record, I've read that cap-and-trade worked very well when it was applied to sulfur emissions (which cause acid rain).
CronoDAS: Can you clarify what you mean by "worked very well"? Do you specifically mean that the policy was effective at reducing sulfur emissions? (As opposed to, e.g. saying that it reduced sulfur emissions with minimal negative short-term economic impact.)
There's a fair bit of evidence that it both reduced sulfur dioxide emission and had little negative economic impact. See this article which discusses a lot of these issues and what can be learned going forwards about how to apply cap and trade systems for other pollutants.