Comments bvenner has made

Similar to feed-in tarrifs?

For the electricity sector, how would the refund for wind/solar/hydro/nuclear be calculated in this system?  Perhaps Sweden already did this, but I'm feeling too lazy to check the references.  If you use ongoing emissions of CO2, then the allocation weight is infinite for "zero carbon" developments and the entire refund would be allocated to "zero carbon" developments.  In other words, zero carbon electricity would be directly subsidized by coal & natural gas.  I like this conclusion, but would utilities? Perhaps you could use an allocation weight based on the CO2 used to construct the plant amortized over the expected life, although this would be complicated, particularly for previously constructed plants.  Either way, this system would be similar to feed-in tarrifs paid for out of electricity revenue from coal/natural gas, but instead of tying the tarrif rate to cost, the rate would be tied to CO2 levels.On A possible consensus perspective on the tax vs. cap debate posted 1 year, 5 months ago 6 Responses