Understanding Cap and Trade, and why it is bad for America

http://ceolas.net/#cce5x (http://ceolas.net/#cce5x)
Basic Idea — Offsets — Tree Planting — Manufacture Shift — Fair Trade — Surreal Market — Real Market — Allowances: Auctions + Hand-Outs — Allowance Trading — Companies: Business Stability — Business Costs — In Conclusion

Funding and Impact

Equity and long term loan finance can be used: Long term industrial loans from financial institutions, particularly if federal/state guaranteed, give low yearly interest repayments and lessen the effect on electricity bills or transport cost.

The impact on the businesses is further lessened by the stability and predictability surrounding the funding.

Since only electricity and transport are involved, other business continues as usual and consumers and society in general are spared expense and disruption.

This is even more obvious from having no energy efficiency regulation either.

The focus on electricity and transport gives several advantages – apart from lowering CO2 emissions:

1. Local environmental benefit from less pollution of sulphur and all else that's in the emissions, regardless of the less certain or immediate global benefit from CO2 reduction.

2. Electricity supply alternatives which together with improved grid distribution gives better competition and keeps down electricity bills for consumers.

3. Transport alternatives (using electricity, hydrogen and other energy sources), which also reduces the dependency on oil imports.

No Trade Problems

Unlike Cap and Trade, which involves cement, steel and other industries having to face imports from unregulated countries, the here suggested electricity and transport changes are not just more limited, but also largely local.

The issues are emission reduction and future energy supply.

Given the unproven emission reduction effects on global temperature – and the expense of emission reduction – the key is to engage in activities valuable in themselves, which also keep on track with emission reduction targets at minimal business disruption and expense.

Sufficient first phase 2020 emission reduction, typically quoted at 15-20% reduction, is achieved by acting on electricity generation (coal, gas) and transport (mainly automobiles) alone, since these 2 sectors account for nearly 80% of fuel combustion emissions, and fuel combustion in turn accounted for 94% of CO2 emissions in 2007 (EPA data).