3 comments on “Timmy elsewhere

  1. Mmmm. Mebbe.

    But there’s two possible causes of a collapse in the permit price. One is that companies are discovering brilliant zero-cost ways of reducing emissions. The other is that the ‘baseline’ emissions, and offsets and all the other complexities are so easy to fiddle that companies can claim reductions without really doing anything and without there being real reductions in aggregate emissions.

    Suppose the price of gold sovereigns falls rapidly to zero. Maybe someone’s discovered a cheap way if making gold. Hooray. But more likely, they’re fake.

    The bureaucratic intrusion required properly to establish ‘what would have happened anyway’ is just a killer for tradable GHG permits. It was simpler for acid emissions (SO2), so those schemes worked.

    Better to have a tax – for this reason and because any volatility then shows up in volume, not price.

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