Is cap and trade the solution? Don’t bank on it!

2 thoughts on “Is cap and trade the solution? Don’t bank on it!”

  1. Cheers for the heads up. It’s a good little piece and although I had few minor grumbles, in general she’s dead on. We definitely need to change our ways of thinking – that will certainly be key to a brighter future.
    Recently, on another blog I used to have a lot of respect for, I faced what can only be described as business as usual under new mask. Although I agreed that III and IV gen reactors are probably our best bet to move away from CO2 emissions sooner, I just asked why shouldn’t we remain mindful of energy efficiency? After tearing into me as a “hairshirt green” and that “you’re more than happy to walk to the markets, however, we won’t”, and “why not drive a bigger SUV if we’ve got abundant energy?” I had to leave.
    My main argument is that it’s this cheap and abundant energy that is the problem. As Annie says; big business moved to poorer areas where they ain’t heavily taxed, wage is cheap and there is little to no environmental concern and need for proper waste management. With energy so cheap, this is the most cost effective method, but continues to undermine ecological value.
    The way forward isn’t backwards, nor is it through business as usual (regardless of the energy supply), it’s through new and innovative thinking.
    🙂

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  2. I don’t think Annie (or you) understands cap and trade as well as you think. For example, whether permits are given away or auctioned does not affect the final distribution and thus environmental outcome. Offsets are a political and a monitoring problem not one with the policy itself. See here for detailed analyses…

    http://belfercenter.ksg.harvard.edu/analysis/stavins/?p=108

    My biggest issue with the video, though, is that I do not see another solution out there that will encourage innovation like cap and trade most certainly does. Forget about who is getting rich for a second and reflect on the fact that the climate problem will NOT be solved unless the cost of alternative energies is competitive with fossil fuels. This is fundamental, is there another policy approach out there that can achieve this as efficiently as cap and trade? I haven’t seen one…

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