Cap and Trade: Best. Legislation. Evah.

by Little Miss Attila on November 6, 2009

From the American Energy Alliance:

10) It’ll be the largest tax increase in history and will help pay for the government takeover of health care.

9) America’s unemployment rate is only 10 percent. Higher energy prices and the resulting transfer of American businesses overseas will help us double it.

8) The U.S. has been the world’s number one economic superpower for long enough. It’s time to lie down and give someone else a turn.

7) Expensive energy is good. Really expensive energy is even better.

6) By making it more expensive to produce more of the vast amounts of American oil we have right at home and transitioning to affordable, commercial-scale alternatives that don’t exist, we can end our dependence on foreign oil in 10 years!

5) Spending billions of taxpayer dollars to create temporary, government jobs at the expense of long-term, private sector jobs not only makes perfect sense, it’ll be a boon to the nation’s struggling economy. Just look at Spain .

4) Energy is the lifeblood of the American economy – it is, literally, the capacity to do work. Hence, making American energy more expensive and less available will strengthen our economy and enhance our capacity to put Americans to work. Get it?

3) California and Massachusetts have adopted similar policies and they’re now enjoying some of the highest energy prices and unemployment rates in the nation. We need to level the playing field so every state can reap the benefits of expensive energy and abundant joblessness.

2) It will create millions of well-paying green jobs without destroying the jobs of Americans who are currently employed. Who put the green welfare provisions in there, anyway?

1) Reducing economic growth while achieving virtually no environmental benefit is simply a good idea. Don’t ask questions.

Via Bruce.

{ 2 comments… read them below or add one }

tomg51 November 6, 2009 at 11:29 am

0.5) It’s what turned Burma around to become Myanmar.


peter dublin November 6, 2009 at 6:07 pm

:-) Cap and Trade is wrong for a lot more reasons too
- whether one is for or against emission control

The issues are emission reduction and future energy supply.

Given the uncertainty of the effects of emission reduction on global
temperature – and given the expense of emission reduction – the key is
to engage in activites which
1. Are valuable in themselves.
2. Meet emission reduction targets with minimal business disruption and expense.

Sufficient first phase 2020/2030 emission reduction, for 2020
typically quoted at 15-20% reduction, is achieved by acting on
electricity generation (coal, gas) and transport (mainly automobiles)
alone, since these 2 sectors account for nearly 80% of CO2 emissions.

This can be done with emission tax (for cars, allowing free choice)
and emission limits for CO2 (for electricity generation), without any emission trading.

The focus on electricity and transport gives several advantages:

1. Local environmental benefit from less pollution of sulphur and all
else that’s in the emissions, regardless of the less certain or
immediate global benefit from CO2 reduction.

2. Electricity supply alternatives which together with improved grid
distribution gives better competition and keeps down electricity bills
for consumers.

3. Transport alternatives (using electricity, hydrogen and other
energy sources), which give variety of choice and competition
advantages for consumers, additionally reducing the dependency on oil imports.

4. No trade problems: Unlike Cap and Trade, which involves cement,
steel and other industries having to face imports from unregulated
countries, the here suggested electricity and transport changes are
not just more limited, but also largely local.

In 2020 (and again 2030), from then available evidence, either
1. There is increasing consensus that reduction attempts have no
value: In that case little has been lost, since the described changes
in electricity and transport industry carry their own benefit, or
2. Consensus remains that CO2 emission reduction should continue, in which case America is on track,
and may continue with more specific emission reduction efforts towards 2050 that extend electricity and transport measures,
and can involve other industries if necessary.

Funding and Impact
Equity and long term loan finance can be used: Long term industrial
loans from financial institutions, particularly if federal/state
guaranteed, give low yearly interest repayments and lessen the effect
on electricity bills or transport cost.
The impact on the businesses is further lessened by the stability and
predictability surrounding the funding.
Since only electricity and transport are involved, other business
continues as usual and consumers and society in general are spared
expense and disruption.
This is even more obvious from having no energy efficiency regulation either.

Compare with
today’s all-encompassing Cap and Trade (emission trading) suggestions,
with unpredictability, expense, and needless disruption from normal
business practice on one hand, or unnecessary profiteering from free
allowance handouts with little actual emission reduction on the other
hand, together with extensive energy efficiency regulation on what
people can or can’t buy and use.

Emission Policy Alternatives
Introduction: The need – or not – to deal with emissions
The Overall Picture
Emission sources, land and ocean cycles, agriculture and deforestation
1. Direct Industrial Emission Regulation
Mandated reduction of CO2, monitored like other emission substances
2. Carbon Taxation
Fuel Tax — Emission Tax
3. Emission Trading (Cap and Trade)
Basic Idea — Offsets — Tree Planting — Manufacture Shift — Fair
Trade — Surreal Market — Allowances: Auctions + Hand-Outs –
Allowance Trading — Companies: Business Stability + Cost — In Conclusion
4. Contracted CO2 Reduction
Private companies compete for contracts to lower CO2 emissions


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