So we may find ourselves quite a trap. Once carbon-use rights are sold, owners will have an interest in preserving their value—two-thirds of a trillion dollars for openers. Carbon cap and trade will set up an alliance between big carbon owners and environmentalists, as both will favor rigid restrictions even in the face of changing circumstances. Big Carbon would likely align with environmental and NIMBY interests to oppose nuclear power, offshore windmills and other alternative energy sources to support the values of carbon rights.How very ironic that we would simultaneously elect to tax ourselves into oblivion with the stated purpose being that we sacrifice now to make the necessary technological jumps sooner than the market would normally allow, only to find that the tax itself will disincentivize those jumps being made.
Patriot Room links. Thanks!