Man’s insane

There is a real problem with accounting for carbon, in my view, because carbon pricing is beyond the control of the company. The carbon market is a wholly artificial market, created for regulatory purposes, not a natural market as such. That means it is hard to use as a real measure in accounting.

Carbon pricing puts emissions into every price in the economy. Corporate accounts are composed with market prices. Therefore carbon pricing entirely solves the problem of carbon accounting.

Except this doesn’t provide an income so it can’t be an acceptable solution. Therefore, instead, the insistence on pulling figures out of the auditor’s arse instead.

9 thoughts on “Man’s insane”

  1. Food pricing is entirely beyond the control of the company as well. My sammich shop has to pay the going rate for loaves of bread and tubs of partially-reconstituted-dairy-spread-substitute.

  2. When you say “carbon pricing” do you actually mean “CO2 pricing”? Given that all life-forms (wexcepting a few oddities) and a whole lot besides are carbon based the concept of pricing carbon is fantasy world.

  3. And just what completely non-artificial approach does the spud-meister suggest?

    @asiaseen – yes, a pet-peeve of mine, as well.

  4. When a thing is bollocks it’s no good saying ‘what if it’s not bollocks, what should we do?’, because it’s bollocks.

  5. “Doesn’t someone still need to set the carbon price. so won’t it still be somewhat arbitrary?”

    So not in any way a market solution.

  6. asiaseen;

    ‘When you say “carbon pricing” do you actually mean “CO2 pricing”? ‘

    A weird thing – back when acid rain was a thing, SO2 being the main culprit IIRC, the concept seemed to be based on the specific pollutant apparently causing the problem, SO2, NOX, whatever.

    Which strikes me as being perfectly fine, rational, what have you.

    Shortly after, the trick was to define the specific effects of any specific pollutant as down to an equivalent multiple of CO2.

    Yeah, it’s arse water of the highest gravy.

  7. Tax is beyond the control of the company, a wholly artificial system created for regulatory purposes, not a natural market as such.

    That must mean that it is hard to use as a real measure in accounting.

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