<![CDATA[Grist - Comment Feed for New U.S. Pirg report recommends 100 percent of allowances be auctioned]]> Grist Comment Feed en Comment #1 by ngoddard http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/ Fri, 21 Sep 2007 06:28:53 -0700 http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/1 one step forward

Great!  Auction + cap'n'trade is economically equivalent to a tax.  Let's get the former agreed, then we can swiftly move on to the administratively much simpler tax.  I gather that is the EU plan, maybe the US can beat them to it!

]]> one step forward

Great!  Auction + cap'n'trade is economically equivalent to a tax.  Let's get the former agreed, then we can swiftly move on to the administratively much simpler tax.  I gather that is the EU plan, maybe the US can beat them to it!

]]> Comment #2 by Jason D Scorse http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/ Fri, 21 Sep 2007 07:23:55 -0700 http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/2 Thanks for this...

just discussing cap and trade in class. Every economist since forever has pretty much been in favor of auctioning- it's the political issue that's tricky- we'll see if this time something can change. I'm not holding my breath. Hasn't happened in the EU scheme.

I teach environmental economics and blog at http://www.voicesofreason.info.

]]> Thanks for this...

just discussing cap and trade in class. Every economist since forever has pretty much been in favor of auctioning- it's the political issue that's tricky- we'll see if this time something can change. I'm not holding my breath. Hasn't happened in the EU scheme.

I teach environmental economics and blog at http://www.voicesofreason.info.

]]> Comment #3 by Gar Lipow http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/ Fri, 21 Sep 2007 08:10:40 -0700 http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/3 Auction vs. tax

Yes a tax is administratively simpler and less volatile than auctioned permits. But if we can get auctioned permits I think the difference is small enough between that and a tax that it would not be worth the political energy to fight to turn it into a real tax. I'd live with the inefficiencies and turn to other fights, and I suspect so would most carbon tax advocates.

]]> Auction vs. tax

Yes a tax is administratively simpler and less volatile than auctioned permits. But if we can get auctioned permits I think the difference is small enough between that and a tax that it would not be worth the political energy to fight to turn it into a real tax. I'd live with the inefficiencies and turn to other fights, and I suspect so would most carbon tax advocates.

]]> Comment #4 by Gar Lipow http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/ Fri, 21 Sep 2007 08:14:40 -0700 http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/4 Allowances

This last has a dark side

Policy-makers at all levels must immediately make clear that new coal-fired power plants will not be grandfathered under any allowance allocation scheme.

OK - great that they are against grandfathering of coal-powered plants.  But this seems to take for granted that there will be allowances. If this is a statement for 100% auctioning, doesn't that mean that nobody gets grandfathered.


]]> Allowances

This last has a dark side

Policy-makers at all levels must immediately make clear that new coal-fired power plants will not be grandfathered under any allowance allocation scheme.

OK - great that they are against grandfathering of coal-powered plants.  But this seems to take for granted that there will be allowances. If this is a statement for 100% auctioning, doesn't that mean that nobody gets grandfathered.


]]> Comment #5 by ngoddard http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/ Fri, 21 Sep 2007 23:38:02 -0700 http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/5 EU is auctioning permits

It's up to member states, but they are choosing to do it e.g., UK:
In Phase I, given the newness of the EU ETS, effectively all allowances were distributed on a free basis. The EU ETS Directive permits Member States to auction up to 10% of allowances in Phase II, which runs from 2008 to 2012. The UK's National Allocation Plan (NAP) for Phase II of EU ETS, published last summer, set out the Government's intention to auction 7% of the total UK emissions allowances.

From here.



]]> EU is auctioning permits

It's up to member states, but they are choosing to do it e.g., UK:
In Phase I, given the newness of the EU ETS, effectively all allowances were distributed on a free basis. The EU ETS Directive permits Member States to auction up to 10% of allowances in Phase II, which runs from 2008 to 2012. The UK's National Allocation Plan (NAP) for Phase II of EU ETS, published last summer, set out the Government's intention to auction 7% of the total UK emissions allowances.

From here.



]]> Comment #6 by farnishk http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/ Sun, 23 Sep 2007 05:56:37 -0700 http://www.grist.org/article/green-world-unites-behind-auctioning-carbon-allowances/6 Privatising The Atmosphere

It wasn't until I heard Satish Kumar of Resurgence speak last week that I realised that carbon emissions trading is simply a way of PRIVATISING THE ATMOSPHERE. Our air is now going to be chopped up into myriad global packets, into which each nation has certain rights to pump greenhouse gases. They have bought the atmosphere from the Earth and there is no way they are giving it back.

On the surface carbon trading looks like a solution, but deeper down it looks like something a lot more sinister.

What about accepting that the atmosphere is not ours to fill with greenhouse gases and then agreeing not to fill it with greenhouse gases? No giving out financial "rights to pollute", we set a limit (450 ppm carbon dioxide equivalent), we apply per capita quotas, the big polluters cut their emissions, the small polluters raise theirs to the limit if required. If the net effect is less carbon than 450 ppm then we all cheer and don't sell allowances to big polluters because THE ATMOSPHERE IS NOT FOR SALE!

Keith Farnish www.theearthblog.org

]]> Privatising The Atmosphere

It wasn't until I heard Satish Kumar of Resurgence speak last week that I realised that carbon emissions trading is simply a way of PRIVATISING THE ATMOSPHERE. Our air is now going to be chopped up into myriad global packets, into which each nation has certain rights to pump greenhouse gases. They have bought the atmosphere from the Earth and there is no way they are giving it back.

On the surface carbon trading looks like a solution, but deeper down it looks like something a lot more sinister.

What about accepting that the atmosphere is not ours to fill with greenhouse gases and then agreeing not to fill it with greenhouse gases? No giving out financial "rights to pollute", we set a limit (450 ppm carbon dioxide equivalent), we apply per capita quotas, the big polluters cut their emissions, the small polluters raise theirs to the limit if required. If the net effect is less carbon than 450 ppm then we all cheer and don't sell allowances to big polluters because THE ATMOSPHERE IS NOT FOR SALE!

Keith Farnish www.theearthblog.org

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