A short discussion of Cap and Trade

cap_and_trade_article
Emissions trading (or emission trading) is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. It is sometimes called cap and trade.
A central authority (usually a government or international body) sets a limit or cap on the amount of a pollutant that can be emitted. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount. The total amount of allowances and credits cannot exceed the cap, limiting total emissions to that level. Companies that need to increase their emission allowance must buy credits from those who pollute less. The transfer of allowances is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed. Thus, in theory, those that can easily reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest possible cost to society.
It’s not every day we get to invent a commodity…
TeamLDCO (6:46:36 PM): do you have a post about cap and trade anywhere in your blog?
IRAHit (6:48:59 PM): no
IRAHit (6:49:09 PM): that’s a good idea though
TeamLDCO (6:49:23 PM): are you for or against it?
IRAHit (6:50:39 PM): well it seems to be working in europe as another commodities market
TeamLDCO (6:50:53 PM): hmm
TeamLDCO (6:51:16 PM): then why do conservatives say its a failure if it’s working?
IRAHit (6:51:24 PM): but it might put the US at a disadvantage
IRAHit (6:51:37 PM): they say it won’t work in the states
IRAHit (6:52:38 PM): cause china india africa south america ain’t capping shit
IRAHit (6:53:39 PM): we could pay a heavy price for being green
IRAHit (6:53:58 PM): though in the long term it would pay off
TeamLDCO (6:54:14 PM): thats what i think too
TeamLDCO (6:54:30 PM): so republicans don’t want to pay the initial costs
IRAHit (6:56:02 PM): well they seem to have less of a concern about global warming
IRAHit (6:56:14 PM): but yeah basically
IRAHit (6:56:52 PM): when the oil runs out we will be glad we have a sustainable energy infrastructure
TeamLDCO (7:00:13 PM): and
TeamLDCO (7:00:17 PM): at the current pace
TeamLDCO (7:00:24 PM): oil will be gone in our children’s lifetime
IRAHit (7:00:59 PM): probably ours
TeamLDCO (7:01:07 PM): geez
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