Comments on: Carbon tax versus cap-and-trade http://sorendayton.com/2007/08/02/carbon-tax-versus-cap-and-trade/ Merely an aggregation of a dispersed life online Sun, 29 Jan 2012 16:32:44 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: eye http://sorendayton.com/2007/08/02/carbon-tax-versus-cap-and-trade/comment-page-1/#comment-1146 eye Fri, 03 Aug 2007 15:36:34 +0000 http://www.eyeon08.com/2007/08/02/carbon-tax-versus-cap-and-trade/#comment-1146 I think that I agree with what you are saying here. I think that I agree with what you are saying here.

]]> By: martin seebach http://sorendayton.com/2007/08/02/carbon-tax-versus-cap-and-trade/comment-page-1/#comment-1145 martin seebach Fri, 03 Aug 2007 14:22:47 +0000 http://www.eyeon08.com/2007/08/02/carbon-tax-versus-cap-and-trade/#comment-1145 Bah. Emissions trading is emissions tax, just more complicated , less effective - but dressed up as something "free market"-ish, and thus, by association neccessarily business friendly. Truth is, it's thought up by people who don't understand markets. What happens when more and more companies lower their emissions? Supply rises, demand falls - and prices drop. So, lower prices on emissions? This encourages the companies that hasn't lowered their emissions to just buy credit and pollute instead of cleaning up. Either carbon is bad, and a pigouvian tax is appropriate, or it's not. The rest is just bureaucracy. Bah. Emissions trading is emissions tax, just more complicated , less effective – but dressed up as something “free market”-ish, and thus, by association neccessarily business friendly.

Truth is, it’s thought up by people who don’t understand markets. What happens when more and more companies lower their emissions? Supply rises, demand falls – and prices drop. So, lower prices on emissions? This encourages the companies that hasn’t lowered their emissions to just buy credit and pollute instead of cleaning up.

Either carbon is bad, and a pigouvian tax is appropriate, or it’s not. The rest is just bureaucracy.

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