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It's not net zero impact to pollution, because polluters are forced to buy credits, which increases the costs of their pollution and incentivizes them to reduce
by eigenvector 8y ago
It's not net zero impact to pollution, because polluters are forced to buy credits, which increases the costs of their pollution and incentivizes them to reduce it, while non-polluting technologies are subsidized by the income they can get from selling unused credits.
The key is how many total credits you allocate to begin with - they should be sufficiently scarce that large emitters need to buy credits - and continually ratcheting down the number of credits allocated annually.
- craftyguy 8y ago> which increases the costs of their pollution and incentivizes them to reduce it Or, they pass the cost to the very consumers that sold them the credits.
- chillydawg 8y agoBut that's fine, it'll increase the cost of whatever good is being produced and put pressure on the producers to reduce that price based on competitors polluting less making the same thing.