Thursday, October 1, 2009

Cap and Trade

Here's how the cap and trade theory works: The government gives companies permits to emit greenhouse gases, based on their past emissions, but set at lower levels than in the past. Companies can then cut their emissions levels by reducing production, find an expensive engineered solution to cut emissions, or buy allowances from more efficient companies in order to let a less green firm keep spewing greenhouse gases.

Cap and trade has been an enormous failure in Europe for the same reason it is politically popular here: Carbon is the only commodity trading where it it impossible to establish with reasonable accuracy how much is being bought and sold. Where the commodity that is traded is invisible and can perform no useful purpose for the purchaser, and wher both parties benefit if the quantities traded are exaggerated. It's an invitation for fraud and that's what it happening all over the world.

The CBO estimated cost per person in America will exceed $1,700 per person, per year. All of this because, we are supposedly warming up the planet. Have you heard of the sun? How about seasons?

If you would like to read all 832 pages, here it is:
http://kerry.senate.gov/cleanenergyjobsandamericanpower/pdf/bill.pdf

1 comment:

  1. An invitation for fraud, millions of lost jobs, thousands in increased energy costs, it's hard to see the benefit of this cap and trade legislation. Visit http://tiny.cc/pxIgi to write Congress voicing your opposition to cap and trade.

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