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Argument: Companies will pollute as much as possible before start of carbon trading
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| Revision as of 20:15, 11 June 2010 (edit) Lenkahabetinova (Talk | contribs) (→Parent debate(s)) ← Previous diff |
Revision as of 19:29, 19 March 2011 (edit) Valexion (Talk | contribs) (→Supporting evidence) Next diff → |
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| *[[Debate: Cap-and-trade versus carbon tax]] | *[[Debate: Cap-and-trade versus carbon tax]] | ||
| ==Supporting evidence== | ==Supporting evidence== | ||
| - | Join in, and add support and evidence to this 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. |
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| + | 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. | ||
Revision as of 19:29, 19 March 2011
Parent debate(s)
Supporting evidence
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.
