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I agree with everything you say, however cap and trade is not working as designed. Instead, we have gotten a system of questionable carbon offsets where neithe
by labster 3y ago
I agree with everything you say, however cap and trade is not working as designed. Instead, we have gotten a system of questionable carbon offsets where neither the buyer nor the seller is interested in investigating the quality of the product closely, nor are the regulators. The money is moving without achieving the goal of reducing global warming. Some of these policies have been in place for 20 years, and has hardly gotten any movement of the needle. ESG investing has done more, for crying out loud.
We need to be acting like this is an emergency, because it is, and not rely on the market to produce a quality offset where no one cares about the quality. Tax emissions over the cap to pay for the externalities. Put a hard cap, like we do on vehicles, and the market will adjust. Stop tax benefits to oil production -- I know we still need petrochemicals for plastics, but not this much.
- imtringued 3y agoCap and trade is not the same as carbon offsetting at all. You are mixing up things. The idea behind cap and trade is that there is a limit to the total amount of emissions and you need a certificate from the government to pollute. The trading part just moves certificates around with a monetary incentive. Carbon offsetting is the exact opposite of cap and trade, since it raises the cap by issuing more certificates.
- labster 3y agoAh, thanks for clearing that up.