Sunday, February 28, 2010

Out of the Cap-and-Trade Frying Pan, ...

Three key senators are engaged in a radical behind-the-scenes overhaul of climate legislation, preparing to jettison the broad "cap-and-trade" approach that has defined the legislative debate for close to a decade. ...

Sen. Lindsey O. Graham (R-S.C.) ... , Sens. John F. Kerry (D-Mass.) and Joseph I. Lieberman (I-Conn.) ... plan to introduce legislation next month that would apply different carbon controls to individual sectors of the economy instead of setting a national target.
It is hard to imagine a worse policy than the Cap-and-Trade program being kicked around Congress, but this new proposal fits the bill. 

For all its problems, CAT at least allows markets to price the permits, which means economic considerations determine who emits more or less carbon (given the number of permits).

The command-and-control system being suggested by Graham et al. means politics, not costs and benefits, will determine who gets to emit carbon.  Another victory for crony capitalism.

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Anonymous said...

This whole global warming thing is just a big scam to allow big govt to collect more money and restrict our rights. I am not denying warming, just the nanny-state band- aid solutions. Let the free market economy sort it out. When coastal areas flood resulting in mass migrations, water and food shortages, people will rethink their environmental impact and act with their wallets, accordingly and willingly. May be a bit messy initially but free markets will find our way out to a better world. Those too stupid or lazy to prepare for the inevitable will be the ones to pay the price, with no great loss to civilization. Gets rid of the dead wood that is holding us back anyway...USA #1!!!

David said...

I have an open mind on global warming, rejecting both the politicized science on both sides. And, my conclusion after a few years of looking at the "evidence" is that there isn't any. Unfortunately, both sides spend so much time with their tribalistic demonization that it is very difficult to learn anything substantive. But, until there is SOME proof of global warming, I am dead set against cap and trade. More wasting of our money.

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