Friday, February 27, 2009

I Hate Cap And Trade

TW: I hate cap and trade. Can you explain cap and trade? I doubt it. If you cannot explain it, I am highly confident that the majority of the rest of the folks cannot either. Mark it down, cap and trade will never happen. It will be picked apart long before implementation. Those who do not want carbon curtailed will fight it, those who like me think it is a boondoggle waiting to happen will fight it, and those merely confused will not fight for it.

Cap and trade has one attribute which puts it ahead of alternative means to address carbon emissions and reduce our dependence on oil- it does not contain the word "tax". Carbon taxation is by far a better means by which to properly assign costs to the various forms of energy creation. But due to the pathological opposition of many to "taxes", the carbon tax wilts.

Cap and trade is an indirect tax but one that is rife with opportunities for manipulation by governments and private interests. A carbon tax is direct and permits each type of energy to be assigned a fair cost related to its pollution impact.

I fear the only reason Obama has it in his plan is to use the revenues to offset the deficit but I have a feeling he knows its inclusion is a chimera. More to come...

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