Emission Credits Could Reduce Emission and Eliminate Welfare
See the Wall Street Journal March 3, 2007 editorial Cap and Charade cautioned about “the political and business self-interest behind carbon limits” stating “What Duke, Entergy, TXU, BP, Dupont and all the rest want is to make sure that when the right to produce CO2 becomes limited, they're the ones that end up owning the allowances.”
■ “Earlier this year, 10 big American companies formed the Climate Action Partnership to lobby for government action on climate change.”
■ “Texas utility TXU [will] would join the forces lobbying for a cap on carbon emissions.”
■ Companies “for whom reductions were cheap or easy would reduce” emissions reducing the amount of credits they would need to buy
■ “If a cap is coming, better to design it in a way that [your company can] profit from it, instead of being killed by it.”
■ “there's no constraint on your ability to produce CO2 until the government creates one. When it does, it creates an artificial scarcity”
■ “What Duke, Entergy, TXU, BP, Dupont and all the rest want is to make sure that when the right to produce CO2 becomes limited, they're the ones that end up owning the allowances.”
■ “China is putting up a new coal-fired plant every week, raising emissions that will overwhelm whatever reductions cap-and-trade would yield in the U.S.”
■ “Earlier this year, 10 big American companies formed the Climate Action Partnership to lobby for government action on climate change.”
■ “Texas utility TXU [will] would join the forces lobbying for a cap on carbon emissions.”
■ Companies “for whom reductions were cheap or easy would reduce” emissions reducing the amount of credits they would need to buy
■ “If a cap is coming, better to design it in a way that [your company can] profit from it, instead of being killed by it.”
■ “there's no constraint on your ability to produce CO2 until the government creates one. When it does, it creates an artificial scarcity”
■ “What Duke, Entergy, TXU, BP, Dupont and all the rest want is to make sure that when the right to produce CO2 becomes limited, they're the ones that end up owning the allowances.”
■ “China is putting up a new coal-fired plant every week, raising emissions that will overwhelm whatever reductions cap-and-trade would yield in the U.S.”
How about granting the emission credits equally to all US citizens for their energy needs and able to sell the excess for industry and individuals to use? Markets could be established for companies and individuals to purchase the limited number of emission credits. No grandfather clause, all companies and individuals would require emission credits.
Each American could use as a source of income offsetting other taxes paid, while it would provide a minimum income level so welfare payments might be able to be eliminated. Individuals and companies who emit a lot would have to pay a lot.
Some Americans could refuse to sell their emission credits reducing the overall level impacting the environment. Although artificial, the government could use the marketplace effectively this way.
posted by Gene Felder at 2:30 PM
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