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That would be a bad plan. If there's still demand then the market will spur more development and exploration. It turns there's a lot of oil in the world, the

That would be a bad plan. If there's still demand then the market will spur more development and exploration. It turns there's a lot of oil in the world, the fracking revolution in the US proved that. It would take $Ts to make a dent. And it wouldn't even work, as most oil reserves are held by national governments, who would thank you for raising the price of oil. But let's suppose you did spend $Ts to shut in specific wells. You've spend all that money and gotten no economic benefit, except for other fossil fuel producers. If you had instead spent those $Ts on encouraging the deployment of fossil fuel free transportation and industrial processes you would destroy demand for that oil and (hopefully) leave it in the ground because its not economic to take it out.

deleted 5y ago
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cousin_it 5y ago
Yeah, makes sense. In fact I don't care much if oil is taken out or not. I just came up with a funny scheme. Each person submits a bid saying "I'd like to receive X dollars per 1MT increase in net daily emissions, and I'm willing to pay the same sum per 1MT decrease". The tricky part is paying for second derivative: not CO2 concentration, not emissions, but change in emissions. Then as the emissions actually happen, they get tallied up by the government, an average "price per 1MT increase" gets determined, and emitters are forced to pay that price, so everyone gets paid (or pays) exactly as they asked. If carbon capture also happens, then carbon capture companies also get paid, either by emitters if there's a net increase, or from people's stated bids if there's a net decrease. This seems weird at first, what if everyone submits million-dollar bids? Well, then emitters reduce emissions for a short time and take everyone's money. On the other hand, what if everyone submits zero? Then emitters keep increasing emissions, and everyone misses out on being paid. So there's some optimal bid in between. Anyone who wants emissions to go down just submits a larger bid.

deleted 5y ago

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cousin_it 5y ago

Yeah, makes sense. In fact I don't care much if oil is taken out or not. I just came up with a funny scheme. Each person submits a bid saying "I'd like to receive X dollars per 1MT increase in net daily emissions, and I'm willing to pay the same sum per 1MT decrease". The tricky part is paying for second derivative: not CO2 concentration, not emissions, but change in emissions. Then as the emissions actually happen, they get tallied up by the government, an average "price per 1MT increase" gets determined, and emitters are forced to pay that price, so everyone gets paid (or pays) exactly as they asked. If carbon capture also happens, then carbon capture companies also get paid, either by emitters if there's a net increase, or from people's stated bids if there's a net decrease. This seems weird at first, what if everyone submits million-dollar bids? Well, then emitters reduce emissions for a short time and take everyone's money. On the other hand, what if everyone submits zero? Then emitters keep increasing emissions, and everyone misses out on being paid. So there's some optimal bid in between. Anyone who wants emissions to go down just submits a larger bid.