Timmy elsewhereMay 5, 2014 Tim WorstallTimmy Elsewhere3 CommentsAt the ASI. That the price of carbon credits is approaching zero is a good thing. previousYes, very much sonextBit rich isn’t it? 3 thoughts on “Timmy elsewhere” Machiii May 5, 2014 at 8:46 am Link not working seulmoi May 5, 2014 at 12:27 pm http://www.adamsmith.org/blog/regulation-industry/hurrah-the-price-of-carbon-credits-is-approaching-zero Works FlatEric May 5, 2014 at 8:00 pm 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. Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment Name * Email * Website Save my name, email, and website in this browser for the next time I comment.