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I didn't say, nor do I believe, that it's impossible. I even agree with your approach, pricing the externalities into the cost. A few challenges that come to
by jcims 6y ago
I didn't say, nor do I believe, that it's impossible. I even agree with your approach, pricing the externalities into the cost. A few challenges that come to mind:
a) We don't have a good way to normalize offset pricing, there's a nascent market but there is tremendous variability in pricing.
b) It's also not clear how much the offset market can scale on existing approaches and technologies. We can only plant so many trees, and we aren't in a position to run most heavy transport or ag off of current electrification technologies. Eventually we're going to need new technologies to reduce dependencies on petroleum and find alternatives or develop carbon capture technologies for processes that are difficult to reduce any further.
c) Economically, nothing happens in a vacuum. When one company our country or industry begins pricing in these externalities, they are placing themselves at a competitive disadvantage. Tariffs and regulation will likely need to be introduced to moderate the inevitable shift in trade and the increased prices will cascade to the consumer.
Ultimately I agree with most of what you're saying, including that political decisions are a large factor.