It is to create a new commodities market so that Goldman Saks and the rest of the Federal Reserve banks can make billions. It is also a tax revenue source. I read the answers you received and I am happy to see how many people know what kind of scam this is. We all must unite (Conservative and Liberal alike) and form a third party to take back our Nation from the Fascists. By Fascists I mean the Democrats and Republicans who are facilitating the merger of our Government and Banks and Corporations and turning us all into slaves indebted to The Federal Reserves fiat currency..
On paper, cap and trade is a sure and efficient way to reduce CO2 emissions. However, there is a lot in the design of the program that can go wrong. First, the market might be set too roomy. When that happens, companies are not pushed to decrease their emissions, they simply can buy more permits. This is especially dangerous in times of economic decline. Companies might be tempted to stop developing their energy efficiency because they are putting out less anyway, even when the energy investments have a positive rate of return themselves. If that happens, nobody will have invested in renewables by the time the economy starts to pick up again, and we are back to square 1. Moreover, failure to develop renewables will result in a new oil price hike, thereby trunking econmic growth. Second, the permits should be sold to companies, rather than given. In europe, credits were given on the basis of existing emissions, thereby punishing companies that were already doing a lot, or companies that are just starting up. The CO2 credits then are just free money. Third, the market should not be too small. By having only national (state in the US) markets, it's easier for comapnies to lobby for lax market regulation. In a market with more players, there will be more of a push to actually decrease CO2 emissions. I don't know the ins and outs of the california plan, but i these are some of the things that made cap and trade a dull tool in europe
The goal is to reduce carbon emissions while inflicting as little damage as possible to the economy.
Under a traditional regulation process, emissions limits are set arbitrarily. For example, all emissions are produced by 2 companies in 2 industries. Company A makes cars. Company B makes electricity from coal. Company A finds a way to cut emissions by 10%, which allows it to increase production to the point where marginal profits equal marginal cost, however at this there is no further influence for Company A to continue to look for ways to continue to cut emissions. Company B is enable to find ways to cut emissions, which makes it unable to produce at the point where marginal profits equal marginal costs. So, it it forced to buy electricity on the open market from companies that use different, more expensive technology at a much higher prices.
Under cap and trade, Company A would have an incentive to continue to find ways to lower emissions and company B would be able to buy credits for those reductions at a reasonable market price.
In other words, cap and trade allows maximum flexibility for the uneven pace of scientific breakthrough while at the same time doing the least possible damage to economic growth
The purpose is not to regulate emissions, the purpose is to ruin the economy, to put developing nations (like China and India) on an equal footing with us. China is currently building a new coal-fired power plant every day and wants no part of this until 2020 when their coal-fired builtout program is complete and the U.S. Adminstration remains silent on this fact.
I don't know why we still don't get that our businesses are moving overseas because it's so damn hard to catch a break here. I hate their guts for axing all those American jobs but who can blame them when China doesn't charge retarded emissions taxes?
Because it has nothing to do with the environment. It's about setting up a cash cow for a few priveleged wealthy elite that we, the people feed while losing more and more and eventually depending on our government to save us from it all. You haven't seen bad yet. They will let it get REALLY bad so they can then be our "saviour". It's about power and control.
Because if you set up a program, someone has to make alot of money off of it and why not the Obama and his buddies. Afterall, they won the election and it's clearly the change that the voters wanted. We're screwed.
Comments
It is to create a new commodities market so that Goldman Saks and the rest of the Federal Reserve banks can make billions. It is also a tax revenue source. I read the answers you received and I am happy to see how many people know what kind of scam this is. We all must unite (Conservative and Liberal alike) and form a third party to take back our Nation from the Fascists. By Fascists I mean the Democrats and Republicans who are facilitating the merger of our Government and Banks and Corporations and turning us all into slaves indebted to The Federal Reserves fiat currency..
On paper, cap and trade is a sure and efficient way to reduce CO2 emissions. However, there is a lot in the design of the program that can go wrong. First, the market might be set too roomy. When that happens, companies are not pushed to decrease their emissions, they simply can buy more permits. This is especially dangerous in times of economic decline. Companies might be tempted to stop developing their energy efficiency because they are putting out less anyway, even when the energy investments have a positive rate of return themselves. If that happens, nobody will have invested in renewables by the time the economy starts to pick up again, and we are back to square 1. Moreover, failure to develop renewables will result in a new oil price hike, thereby trunking econmic growth. Second, the permits should be sold to companies, rather than given. In europe, credits were given on the basis of existing emissions, thereby punishing companies that were already doing a lot, or companies that are just starting up. The CO2 credits then are just free money. Third, the market should not be too small. By having only national (state in the US) markets, it's easier for comapnies to lobby for lax market regulation. In a market with more players, there will be more of a push to actually decrease CO2 emissions. I don't know the ins and outs of the california plan, but i these are some of the things that made cap and trade a dull tool in europe
The goal is to reduce carbon emissions while inflicting as little damage as possible to the economy.
Under a traditional regulation process, emissions limits are set arbitrarily. For example, all emissions are produced by 2 companies in 2 industries. Company A makes cars. Company B makes electricity from coal. Company A finds a way to cut emissions by 10%, which allows it to increase production to the point where marginal profits equal marginal cost, however at this there is no further influence for Company A to continue to look for ways to continue to cut emissions. Company B is enable to find ways to cut emissions, which makes it unable to produce at the point where marginal profits equal marginal costs. So, it it forced to buy electricity on the open market from companies that use different, more expensive technology at a much higher prices.
Under cap and trade, Company A would have an incentive to continue to find ways to lower emissions and company B would be able to buy credits for those reductions at a reasonable market price.
In other words, cap and trade allows maximum flexibility for the uneven pace of scientific breakthrough while at the same time doing the least possible damage to economic growth
The purpose is not to regulate emissions, the purpose is to ruin the economy, to put developing nations (like China and India) on an equal footing with us. China is currently building a new coal-fired power plant every day and wants no part of this until 2020 when their coal-fired builtout program is complete and the U.S. Adminstration remains silent on this fact.
I don't know why we still don't get that our businesses are moving overseas because it's so damn hard to catch a break here. I hate their guts for axing all those American jobs but who can blame them when China doesn't charge retarded emissions taxes?
Because it has nothing to do with the environment. It's about setting up a cash cow for a few priveleged wealthy elite that we, the people feed while losing more and more and eventually depending on our government to save us from it all. You haven't seen bad yet. They will let it get REALLY bad so they can then be our "saviour". It's about power and control.
Because if you set up a program, someone has to make alot of money off of it and why not the Obama and his buddies. Afterall, they won the election and it's clearly the change that the voters wanted. We're screwed.
So they can make trillions of dollars in the long run that's why. Follow the money....
Has anyone on YA gotten more thumbs down than poor Seldon?
Because its not about cleaning up the environment its about centralizing control of the economy. Cap and Trade is nothing but a power grab.
This is just a name to cover what it really is---funding the cost of big government.