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Argument: Companies will pollute as much as possible before start of carbon trading
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(Difference between revisions)
| Revision as of 04:46, 21 September 2007 (edit) Brooks Lindsay (Talk | contribs) ← Previous diff |
Current revision (16:06, 21 March 2011) (edit) Brooks Lindsay (Talk | contribs) |
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| ==Parent debate(s)== | ==Parent debate(s)== | ||
| - | *[[Debate:Carbon Emissions, Market vs. Regulatory Approaches]] | + | *[[Debate: Cap-and-trade versus carbon tax]] |
| + | == Extended argument == | ||
| + | The initial distribution/auction of pollution credits would be based on the current levels of pollution in the firms. It would be of interest to firms to increase their pollution before the start of carbon trading, so that later they could expand pollution at no cost, or auction of access credits. | ||
| - | ==Supporting evidence== | + | This can be easily countered by setting the pollution credits at a historic level (e.g. 1 year prior the start of carbon trading.). This leaves the initial credit levels outside the control of the firms. |
| - | Join in, and add support and evidence to this argument! | + | |
Current revision
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Parent debate(s)
[Edit]
Extended argument
The initial distribution/auction of pollution credits would be based on the current levels of pollution in the firms. It would be of interest to firms to increase their pollution before the start of carbon trading, so that later they could expand pollution at no cost, or auction of access credits.
This can be easily countered by setting the pollution credits at a historic level (e.g. 1 year prior the start of carbon trading.). This leaves the initial credit levels outside the control of the firms.
