rfugger’s Recent Comments

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  Carbon freeze

  David, a carbon freeze doesn't mean that there can't be new sources of emissions, just that they have to be offset by reductions in current sources.  You accomplish this by selling permits to emit a certain amount of CO2, and cap those permits at the current level of emissions.  In practice, only suppliers of fossil fuels would need permits to sell their fuel and that tax would get passed on to consumers.  This is how Kyoto was supposed to be implemented on a national level.

  Usually when you're selling a limited number of permits, you auction them off and let the market decide what their value is.  But you couldn't guarantee that would be revenue-neutral.  Maybe Gore plans on issuing permits at a fixed price.  It would be interesting if permits were transferable, creating a market for investors to snap up cheap permits and sell them later to desperate polluters at a profit...
  On The most noteworthy features posted 3 years, 1 month ago 5 Responses