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How the eff does it work? Who gets the credits to start with? Why do you think the companies prefer cap-and-trade? of course it's more complicated to end up mon
by RockyMcNuts 10y ago
How the eff does it work? Who gets the credits to start with? Why do you think the companies prefer cap-and-trade? of course it's more complicated to end up monitoring both the pollution and who owns what credits.
the whole point of cap-and-trade is to avoid the word 'tax', and to create a vast rent-seeking system and potential for gaming the system, and make it politically palatable by paying off the people who might object.
http://www.telegraph.co.uk/finance/newsbysector/energy/6912667/Carousel-frauds-plague-European-carbon-trading-markets.html http://www.telegraph.co.uk/finance/newsbysector/energy/69126...
http://www.france24.com/en/20160503-france-trial-multi-billion-carbon-emissions-trading-fraud-opens-paris http://www.france24.com/en/20160503-france-trial-multi-billi...
- rayiner 10y agoThe ethanol credits are linked to ethanol production.
- RockyMcNuts 10y agomy comment referred to a choice between carbon tax vs. cap-and-trade for reducing emissions, which seems unrelated to ethanol credits. I just think taxing coal/oil/natural gas as it's produced and sold, based on how much carbon it contains, is easy and effective, enforcing a carbon credit system is hard and prone to shenanigans, fraud, corruption. Economically they're essentially the same and the shenanigans are a massive bug. But politically, shenanigans are a feature.